A bill seeking to ban sweepstakes casinos in New York has moved to the Senate floor for a vote after passing the chamber’s Racing, Gaming, and Wagering Committee on March 18. The bill’s sponsor, Sen. Joseph Addabbo, is a long proponent of legalizing real-money casinos in the state and also the chairman of that committee. Earlier this year, he stated his intention to close what he sees as a “loophole” allowing sweeps casinos to operate without regulation.
Addabbo introduced SB 5935 on March 4, following up on his promise from earlier this year to address the unregulated sweepstakes casinos in the state. Clearing the committee does not guarantee that sweepstakes casinos will be banned. However, the swift movement of SB 5935 to the Senate floor highlights the urgency lawmakers are placing on the issue.
If the bill were to pass, sites like Chumba Casino, WOW Vegas, and High 5 Casino, among others, would be forced to stop serving New York residents. That would leave residents without many options to play mobile casino games with the chance to win prizes. Sen. Addabbo is working on legalizing real-money online casinos in New York, but that effort may still be years away from fruition.
Addabbo stresses regulatory concerns
The Racing, Gaming, and Wagering Committee passed the bill with six votes in favor and one in favor without recommendation. During the brief meeting, Addabbo introduced sweepstakes casinos as a “growing issue.” He emphasized that these platforms resemble casino games but operate without regulation. Echoing his concerns, Sen. James Tedisco added,
A lot of kids have a lot of temptations. They don’t need another one.
Addabbo also noted that other states are banning sweepstakes casinos. He referenced Connecticut, which revoked High 5 Games’ content supplier license recently. That’s because the Constitution State deemed its sweepstakes platform, High 5 Casino, an illegal operation. The platform has pulled out of Connecticut and other iGaming states but was still operational when Connecticut launched its investigation.
The committee also passed another bill sponsored by Addabbo. SB 2610, which aims to prohibit anyone under 21 from gambling. While New York sportsbooks require bettors to be over 21, the minimum age for some in-person gambling, such as video lottery terminals, is 18.
Sweeps casinos fill New York’s iGaming void
While aiming to ban sweepstakes casinos, Sen. Addabbo continues to push for the legalization of online casinos in New York. The senator has unsuccessfully championed iGaming for the past few years, and chances in 2025 remain slim.
One major roadblock for online casinos is the slow-moving downstate retail casino license process. The first key deadline is June 27, 2025, when potential applicants must submit their applications. There is no lack of interested parties with grand plans. That includes Hard Rock International and New York Mets owner Steve Cohen, who unveiled a $8 billion casino plan in Queens.
Meanwhile, the New York State Gaming Facility Location Board, which selects the winning bids, has set a deadline for March 2026 to award licenses. That date is tentative and further delays might be on the horizon. Frustrated with the sluggish pace, Addabbo introduced a bill to accelerate the process, but New York Gov. Kathy Hochul vetoed it.
In the meantime, sweepstakes casinos have stepped in to fill the gap left by the lack of real-money iGaming options. However, if Sen. Addabbo’s ban passes, New Yorkers will be left with only unregulated offshore platforms, including crypto casinos.
