Overview
- New York Governor Kathy Hochul signed S5935A to ban sweepstakes casino platforms that use dual-currency systems, with immediate effect and fines of $10,000 to $100,000 plus potential license ineligibility or loss.
- The law covers operators as well as supporting businesses such as payment processors and geolocation providers, and follows June cease‑and‑desist actions by the state Attorney General against 26 operators.
- Maine’s LD 2007 would classify operating or promoting online sweepstakes as unlawful gambling, impose civil fines of $10,000 to $100,000, and jeopardize eligibility for state gaming licenses.
- The SGLA condemned New York’s move as rushed and warns Maine’s proposal would stifle innovation, citing Eilers & Krejcik research estimating about $230 million in 2024 economic contribution in New York and projecting tens of millions in potential state revenue under regulation.
- The push in New York and Maine reflects a wider state trend, with reports of similar bans enacted this year in states including California, and the SGLA positioning for regulatory frameworks rather than outright prohibitions.