- Joined
- Jan 17, 2008
- Messages
- 88,886
Full Story/Source
New York has moved decisively against online Sweepstakes Casinos and Sportsbooks. With S5935A now in effect,
the state has formalized a prohibition on operating, promoting, or supporting dual-currency sweepstakes gaming, bringing
an immediate shift for platforms serving residents. The enactment follows months of legislative activity and earlier
enforcement measures targeting these services.
cash-redeemable rewards. The legislation requires the New York State Gaming Commission and the attorney general
to intervene when individuals or affiliated entities knowingly earn revenue connected to prohibited sweepstakes games.
The bill’s language specifies that regulators must prevent such entities from starting or continuing operations and impose penalties when violations occur.
The legislative text defines a prohibited online sweepstakes game as an internet-based promotion or contest, accessible
through devices such as smartphones and computers, that uses two types of in-game currency and offers players the
possibility of cash prizes or cash equivalents. The definition covers activities that simulate casino or Sports Betting formats.
As published on the New York State Senate’s website, regulators may pursue fines ranging from $10,000 to $100,000 for each
breach, and those holding or seeking gaming licenses could face additional consequences. Sweepstakes games without
cash-redeemable rewards fall outside the scope of the ban.
Both Novig and ProphetX informed customers by email that their services were no longer available in the state, paralleling social-media
reports of sudden access restrictions. One customer reacted publicly, posting: “man, thanks for nothing @GovKathyHochul. was it really
necessary to ban @Novig & @PlayProphetX in New York? terrible news waking up and seeing this.”
The bill’s arrival on Hochul’s desk on December 1 triggered a 30-day window for action. Legislators had already approved the
measure earlier in the year, with the final Senate return occurring in June. Had the governor taken no action, the bill would still
have taken effect. The margin of passage was sufficient to sustain a potential veto override.
New York’s decision places the state alongside New Jersey, California, Connecticut, Montana, and Nevada, which have already
enacted comparable prohibitions. Thirteen states have issued cease-and-desist orders, while other jurisdictions have explored
legislative or legal channels to curb the same model. California’s recent bill banning dual-currency sweepstakes games, which
takes effect on January 1, 2026, reflects a similar approach. That measure includes penalties such as fines between $1,000 and $25,000 and potential jail time.
New York has moved decisively against online Sweepstakes Casinos and Sportsbooks. With S5935A now in effect,
the state has formalized a prohibition on operating, promoting, or supporting dual-currency sweepstakes gaming, bringing
an immediate shift for platforms serving residents. The enactment follows months of legislative activity and earlier
enforcement measures targeting these services.
Enforcement Authority and Core Restrictions
Lawmakers framed S5935A around blocking the online sweepstakes model built on dual-currency systems andcash-redeemable rewards. The legislation requires the New York State Gaming Commission and the attorney general
to intervene when individuals or affiliated entities knowingly earn revenue connected to prohibited sweepstakes games.
The bill’s language specifies that regulators must prevent such entities from starting or continuing operations and impose penalties when violations occur.
The legislative text defines a prohibited online sweepstakes game as an internet-based promotion or contest, accessible
through devices such as smartphones and computers, that uses two types of in-game currency and offers players the
possibility of cash prizes or cash equivalents. The definition covers activities that simulate casino or Sports Betting formats.
As published on the New York State Senate’s website, regulators may pursue fines ranging from $10,000 to $100,000 for each
breach, and those holding or seeking gaming licenses could face additional consequences. Sweepstakes games without
cash-redeemable rewards fall outside the scope of the ban.
Rapid Market Response and National Context
Gov. Kathy Hochul’s signature brought immediate effects. Several operators responded within hours by cutting off New York users.Both Novig and ProphetX informed customers by email that their services were no longer available in the state, paralleling social-media
reports of sudden access restrictions. One customer reacted publicly, posting: “man, thanks for nothing @GovKathyHochul. was it really
necessary to ban @Novig & @PlayProphetX in New York? terrible news waking up and seeing this.”
The bill’s arrival on Hochul’s desk on December 1 triggered a 30-day window for action. Legislators had already approved the
measure earlier in the year, with the final Senate return occurring in June. Had the governor taken no action, the bill would still
have taken effect. The margin of passage was sufficient to sustain a potential veto override.
New York’s decision places the state alongside New Jersey, California, Connecticut, Montana, and Nevada, which have already
enacted comparable prohibitions. Thirteen states have issued cease-and-desist orders, while other jurisdictions have explored
legislative or legal channels to curb the same model. California’s recent bill banning dual-currency sweepstakes games, which
takes effect on January 1, 2026, reflects a similar approach. That measure includes penalties such as fines between $1,000 and $25,000 and potential jail time.
