New York is on the brink of becoming the newest US state to ban online sweepstakes 바카라s! Excitingly, legislation aimed at platforms that provide virtual currency redeemable for cash prizes awaits the approval of Governor Kathy Hochul (depicted in the featured image).
Senate Bill 5935 passed the and cleared the Assembly on 17 June 2025. The bill would ban “sweepstakes coins” — virtual tokens that players can exchange for real money or prizes. If signed, New York would join Montana and Connecticut in prohibiting such platforms.
The legislation comes amid a rising crackdown on unregulated online gambling sites across the US. Earlier this month, New York Attorney General Letitia James issued cease-and-desist letters to 26 sweepstakes operators. Many of these companies, including VGW — parent of popular sites like Chumba Casino, LuckyLand Slots, and Global Poker — have already exited the New York market.
“This legislation sends a chilling message to anyone seeking to invest in the future of gaming innovation,” said a spokesperson for the Social and Promotional Games Association (SPGA), which opposes the bill. The association argues the law could stifle innovation and investment in the gaming and technology sectors.
Criminal penalties for running sweepstakes
The bill includes potential criminal penalties for individuals or companies involved in platforms that offer any currency, digital or otherwise, convertible into cash or its equivalent. Supporters of the ban point to enforcement actions in other states, such as Connecticut’s suspension of High5Games over illegal gaming counts.
Assemblymember Carrie Woerner emphasised that traditional loyalty programmes — like Starbucks rewards — would not be affected, as these do not allow points to be cashed out.
The Attorney General’s office, in partnership with the New York State Gaming Commission, found that sweepstakes websites operate without regulatory oversight, raising concerns about fairness, player protection, and data security. Their business model offers free tokens but encourages users to purchase virtual coins that are redeemable for prizes, effectively mimicking gambling without obtaining a license.
Part of a pan-US trend
Letitia James warned that such unregulated operations risk serious financial harm and addiction, and may exploit vulnerable groups, including minors. State Gaming Commission Chairman Brian O’Dwyer described these platforms as “unscrupulous, insecure, and unlawful,” advising players to use licensed, regulated operators.
This move is part of a broader national trend. While Montana and Connecticut have already banned sweepstakes 바카라s, some states have resisted such legislation. Regulatory bodies continue to target offshore and sweepstakes operators nationwide. As New York prepares to enact the law, the debate over sweepstakes 바카라s, innovation, and consumer protection is expected to intensify.
