SGLA Defends Regulated Sweepstakes Gaming in New York, State Would Miss Out on Revenues

Online social gaming has grown into a large part of everyday entertainment in the United States, and one advocacy group is calling for a clearer, regulated path rather than sudden bans. The Social Gaming Leadership Alliance (SGLA) is urging New York policymakers to consider structured oversight for sweepstakes gaming platforms, arguing that the state stands to gain meaningful tax revenue if regulation becomes the chosen route.

Good to Know

• SGLA says regulation could generate new yearly tax revenue for New York.
• Economic modeling identifies more than 230 million dollars contributed to the state economy in 2024.
• A national survey found broad support for updating sweepstakes laws instead of eliminating these platforms.

SGLA partnered with research firm Eilers and Krejcik to examine the role sweepstakes-style gaming already plays in New York. The research points to a sizable economic impact. According to the report, online sweepstakes gaming contributed more than 230 million dollars to the state economy in 2024. A large share came from interchange fees collected by New York-based card issuers, estimated at over 135 million dollars.

Advocates argue that further benefits could follow if lawmakers choose to regulate rather than restrict. The report outlines an estimated 80 million dollars in potential new yearly revenue under a structured system that includes operator registration, taxes applied to player purchases, and an expanded advertising environment. Supporters also point to positive public sentiment. A recent survey cited by SGLA indicates that 84 percent of Americans prefer updating sweepstakes laws rather than banning platforms outright.

However, momentum for bans has grown in some regions. California recently moved in a different direction. Governor Gavin Newsom signed Assembly Bill 831, which prohibits online social games tied to sweepstakes promotions. The move followed concerns from lawmakers and some tribal groups who argued that sweepstakes platforms had essentially created gambling environments without defined regulation or consumer protections.

With California, Nevada, Montana, New Jersey, Louisiana, and others either restricting or scrutinizing the category, several states appear to be evaluating their next steps. SGLA describes its goal as promoting regulatory frameworks that offer safeguards for players while maintaining economic activity within state borders.

The group believes a ban-first approach risks pushing players toward offshore or unregulated sites with fewer protections. SGLA maintains that regulation can keep consumer activity onshore, drive state revenue, and create transparency in how sweepstakes-style platforms operate.

The conversation now rests with state legislatures. New York lawmakers are expected to revisit gaming-related policy in upcoming sessions, and the sweepstakes discussion may be featured prominently.

FAQ

What is a sweepstakes gaming platform?

It is a type of online social gaming site where players engage in entertainment-style games with sweepstakes elements. Outcomes involve chance but operate under a separate legal framework from traditional gambling.

Why do some groups want regulation instead of bans?

Advocates argue that regulation brings consumer protections, keeps economic activity within the state, and supports tax revenue. A ban can lead users to offshore or unregulated platforms.

How much revenue could New York gain under regulation?

The recent economic modeling from Eilers and Krejcik points to an estimated 80 million dollars per year from taxes, licensing fees, and market access payments.

Why are some states banning these platforms?

Opponents claim sweepstakes gaming operates too similar to gambling without regulatory oversight. Concerns include consumer risk and lack of responsible gaming safeguards.

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