Are Sweepstakes Casinos Legal in New York?

Stage one: the Attorney General acted first

Before any new law was on the books, the New York Attorney General's office sent cease-and-desist letters to 26 sweepstakes casino operators in June 2025, arguing the dual-currency model already amounted to unlicensed gambling under existing law. By public reporting, every operator that received a letter complied and withdrew from New York rather than contest it.

Stage two: a formal ban (S5935A)

Governor Hochul later signed bill S5935A, which formally outlaws online games that use a dual-currency system - Gold Coins alongside a second currency redeemable for cash prizes, the same structure our guide to how the model works describes. Like California's law, it doesn't stop at the casino operator - it also prohibits support from payment processors, geolocation firms, content suppliers, and advertisers, which covers referral and affiliate sites too.

Penalties

Reported fines range from $10,000 to $100,000 per violation, with potential loss of any existing gambling license or future eligibility to operate in the state - substantial enough that the law mostly formalized an exit that had already happened the year before.

What this means for you

If you're a New York resident, expect every legitimate sweepstakes casino to block your access at sign-up - this has effectively been the case since mid-2025, well before the formal law took effect. A site that lets a New York address through is a red flag, not a loophole.

Compiled from public reporting as of September 2026. Laws and enforcement can change - this is general information, not legal advice. If you have questions about your own situation, consult a licensed attorney.