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New York lawmakers have passed a bill to end sweepstakes casinos in the state. The Senate and Assembly passed S5935A this week to ban platforms that allow users to play with virtual currencies that can be redeemed for real money. The bill now goes to Governor Kathy Hochul.
The model used by sweepstakes casinos — dual currencies and redemption mechanics — has been under fire. Lawmakers say it exploits loopholes and blurs the line between free-to-play games and real gambling.
If signed, the new law would take effect immediately. Operators, advertisers and payment processors involved with these platforms could face fines from $10,000 to $100,000. Enforcement would be handled by the state’s Gaming Commission and Attorney General.
New York would be the third state to ban sweepstakes casinos, following Montana and Connecticut. Several other states, including New Jersey and Ohio, have taken similar action in recent months.
