Sweepstakes casinos operated in a loophole. Instead of taking direct bets, they sold "Gold Coins" for entertainment and gave away "Sweeps Coins" that could be redeemed for cash prizes. Because the cash-redeemable currency was technically free to obtain, these sites argued they were promotional sweepstakes rather than gambling — and they operated in New York and most other states without a gaming licence.
What the ban does
On December 5, 2025, Governor Kathy Hochul signed Senate Bill S5935A into law, prohibiting the dual-currency sweepstakes model in New York. The legislation targets platforms that offer both a virtual currency and a parallel currency redeemable for real money or prizes — the defining feature of sweepstakes casinos. Operators offering that model to New York players are now on the wrong side of state law.
Why New York acted
- Consumer protection. Sweepstakes sites operated with none of the oversight applied to regulated gambling — no state-mandated responsible-gambling tools, age controls or dispute resolution.
- Lost tax revenue. The sites generated real gambling-style revenue while paying no gaming tax.
- Regulatory clarity. Lawmakers wanted to close the grey area rather than let an unregulated pseudo-casino market grow.
Notably, some analysts read Hochul's willingness to sign the ban as a sign she prefers a properly regulated alternative to an unregulated one — which could, in time, help the case for legal iGaming.
What it means for players
If you previously played at sweepstakes sites like the ones once advertised to New Yorkers, expect those operators to withdraw from the New York market or geo-block the state. This is not a penalty aimed at players — the law targets operators — but the practical effect is that the sweepstakes option is closing in New York.
How this differs from offshore casinos
Sweepstakes casinos and offshore casinos are not the same thing. Sweepstakes sites used a coins model and often marketed openly in the US; the new law specifically targets them. Offshore casinos take real-money deposits under foreign licences and were never sweepstakes operations. The sweepstakes ban does not legalize or regulate offshore casinos — see our offshore casinos guide for how those work.