New York Cuts Off Online Sweepstakes Gambling

A new rulebook now shapes online gambling in New York, and players across the state woke up to a very different landscape. Lawmakers closed the door on sweepstakes casinos and sweepstakes-style sportsbooks, bringing abrupt changes for operators and anyone tied to that model.

Good to Know

• New York now bans online sweepstakes casinos and sweepstakes-style sportsbooks statewide.
• Penalties range from 10,000 USD to 100,000 USD for each violation.
• Operators that use dual-currency sweep formats, including Novig and ProphetX, have already restricted access for New York users.

New York Cuts Off Sweep Casinos As New Law Takes Hold

Senate Bill 5935 hit the finish line Friday after Gov. Kathy Hochul added her signature, instantly banning the operation or promotion of online sweepstakes gambling in New York. The law stretches beyond operators, reaching financial institutions, media affiliates, geolocation providers, and other support services that help run or promote sweeps-style gaming.

The statute gives regulators the authority to impose steep penalties on anyone who tries to keep the sweeps format alive. Fines sit between 10,000 USD and 100,000 USD for each instance. In cases tied to licensed gambling activity, regulators can also pull an existing gaming license or block an applicant from receiving one in the future.

While the sweeps ban locks the door on that model, licensed online sports betting remains fully legal through existing operators. That contrast created immediate confusion for some players, especially since sweeps products often marketed themselves as low-friction alternatives to regulated sportsbooks.

New York users on platforms like Novig and ProphetX reported quick changes after the signature became public. Access restrictions rolled out almost immediately, with several users posting screenshots showing the new limits. Operators offered little explanation beyond compliance updates, but the timing left very little doubt about the cause.

The bill had already cleared the legislature in June, though it did not reach Hochul until Dec. 1 based on the Senate site timeline. Once the governor signed it, New York joined a small but growing lineup of jurisdictions that have taken action against dual-currency sweep formats often used to mimic real-money gambling.

Industry analysts noted that sweeps brands expected this outcome for months, but the speed of enforcement surprised some operators. Others pointed out that New York looked closely at how the dual-currency model mirrors real-money wagering, especially as more states re-evaluate similar loopholes.

The new rule leaves operators reassessing their approach to one of the most lucrative states in the country for gambling-related business. Many now look at licensed sports betting as the only compliant online format available in New York.

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