NY bans social "sweepstakes" casinos amid state restrictions
The state of New York became the most recent jurisdiction in the United States to formally ban sweepstakes casinos, a dual-currency model that has gained popularity in recent years and that authorities consider a form of unregulated gambling. Governor Kathy Hochul signed the law last week, following legislative approval obtained earlier this year.
The measure consolidates previous regulatory actions. During the summer, numerous operators suspended their activities in New York after receiving cease and desist orders issued by Attorney General Letitia James.
A multibillion-dollar market under increasing scrutiny
A report by Eilers & Krejcik Gaming, prepared for the Social Gaming Leadership Alliance, estimated that sweepstakes casinos generated 10 billion dollars in sales in 2024. New York accounted for approximately 762 million dollars of that total, reflecting the scale of the market affected by the new ban.
More states move toward restrictions
The regulatory trend is expanding nationwide. Legislators from Florida, Indiana, and Maine introduced similar bills this month to ban or limit sweepstakes casinos. Other states, such as California, Connecticut, Montana, Nevada, and New Jersey, have already passed restrictive measures in recent months.
State regulators argue that these platforms operate as disguised betting houses, without a traditional gaming license or oversight comparable to the regulated sector. This concern is driving a wave of enforcement actions and new regulations spreading across the country.
Tags: United States, Sweepstakes casinos, social casino, social casinos