New York imposes prohibition on sweepstakes casinos and sportsbooks
Summary
New York Governor Kathy Hochul has signed S.B. 5935 into law, immediately banning online sweepstakes casinos and sportsbooks that use “dual currency” models for casino-style play and sports prediction. The statute outlaws operation and promotion of these products, extends restrictions to ancillary services (such as payment providers, geolocation firms and media affiliates), and exposes violators to fines of between $10,000 and $100,000 per offence. Entities in breach may also be barred from obtaining or retaining a state gaming licence. Reports indicate some New York users of prediction platforms such as Novig and ProphetX have already seen account access blocked. Licensed online sports betting through approved operators remains unaffected.
Key Points
- S.B. 5935, now law, prohibits sweepstakes casinos and sportsbooks using dual-currency models in New York.
- Promotion and support services tied to these sweepstakes products are also restricted, covering banks, geolocation and affiliate/media partners.
- Penalties range from $10,000 to $100,000 per violation; violators risk losing eligibility for a New York gaming licence.
- Some platforms (Novig, ProphetX) reportedly blocked access for New York users shortly after the law was signed.
- Regulated online sports betting via authorised operators continues to operate under the state’s licensing regime.
- The move follows prior enforcement actions, including cease-and-desist letters from the New York Attorney General to dozens of sweepstakes sites.
Context and relevance
This law is part of a broader push across US states to curb sweepstakes-style gambling products that seek to mimic casino and sportsbook experiences while avoiding formal regulation. Other states, including California, have enacted similar restrictions or issued enforcement notices. For operators, affiliates and service providers, New York’s prohibition tightens the compliance landscape and raises financial and licensing risks for engaging with dual-currency or sweepstakes models. For regulators and consumer-protection advocates, it represents a step to align consumer safeguards for online wagering.
Why should I read this?
Because if you work in iGaming, payments, affiliate marketing or compliance — or you run a product that flirts with dual-currency sweepstakes mechanics — this changes the rules overnight in one of the biggest US markets. It’s short, sharp and means swift action if you have New York users or partners.
Author style
Punchy: This is a big regulatory shift with immediate effect. Operators and partners need to treat it as urgent — not academic. If you care about market access, risk or reputation, read the original text and check exposure now.