Cash-prize sweepstakes casinos are illegal in New York. Governor Kathy Hochul signed S5935A on December 5, 2025, and it took effect that day.
New York sweepstakes casinos are gone, but New Yorkers still have licensed choices, from mobile sportsbooks to the Lottery. This guide explains the ban, then walks through each legal option and its age limit.
New York’s Ban in Three Lines
- What changed – Section 912 outlaws online games that pay cash prizes through a dual-currency system.
- Who it targets – Operators, plus the processors, game suppliers and media affiliates that support them.
- What it costs – Fines run from $10,000 to $100,000 for each violation.
Legal Ways to Play in New York
The ban removed one product, not every option. Each choice below is licensed by the state or sits outside Section 912.
Mobile Sportsbooks
Licensed sports apps went live on the morning of January 8, 2022. Caesars, DraftKings, FanDuel and Rush Street Interactive were among the first.
You must be 21 to open an account. Each app is licensed by the state Gaming Commission.
Commercial Casinos Upstate and in New York City
Four commercial casinos operate upstate, and each requires guests to be 21.
On December 15, 2025, the Gaming Commission approved three more licenses for New York City. They went to Hard Rock Metropolitan Park in Queens, Resorts World in Queens and Bally’s in the Bronx.
Video Lottery Parlors
Video lottery facilities admit players from age 18. Their floors feature video lottery terminals, known as VLTs.
A 2025 Senate bill, SB 2610, proposed raising that age to 21. Check the venue’s rules before you visit.
The New York Lottery
Draw games and scratch-offs are open to anyone 18 or older. Quick Draw is the exception in bars and restaurants, where you must be 21.
Gold Coin Social Games
Section 912 only reaches games whose coins can be exchanged for a cash prize. A social casino that uses play coins with no cash value falls outside that definition.
You win nothing of value, but you keep the slot and table game experience. Avoid any app that adds a second, redeemable coin.
Mystery Boxes and Card Rips
Collector hobbies offer a prize reveal without casino games. Both of the review sites below require users to be 18 or older.
The rankings at mistery-boxes.com carry no paid placements. Its October 2026 leader was HypeDrop, rated 8.9 and open nationwide.
The card rip reviews at mycardrips.com take no sponsor money. Triumph rated 9.1 there, selling packs from $1 with buybacks near 102% on compared cards.
Which Legal Option Fits Your Age
Age decides most of your choices in New York. The table sorts every option on this page by its minimum.
| Option | Minimum age | Online or in person |
|---|---|---|
| Mobile sportsbooks | 21 | Online |
| Commercial casinos | 21 | In person |
| Video lottery facilities | 18 | In person |
| Lottery draw games and scratch-offs | 18 | In person |
| Quick Draw in bars and restaurants | 21 | In person |
| Mystery box and card rip sites | 18 | Online |
Players aged 18 to 20 can still use the Lottery, video lottery parlors and collector sites.
Are Sweepstakes Casinos Legal in New York | Inside Section 912
No. S5935A added Section 912 to the state’s racing and gaming law, and it bans the model outright.
The Games the Law Covers
An “online sweepstakes game” is any online game or promotion using a dual-currency system with a cash prize. Slots, video poker, table games, lottery games, bingo and sports picks all count.
Most sites called that prize coin Sweeps Coins, as Clovr’s Sweeps Coins explainer describes. The statute leaves one detail to regulators. Exactly what counts as a dual-currency system is for the Gaming Commission to decide.
The Businesses the Law Reaches
Running or promoting these games is unlawful. So is supporting them, which pulls in a wide circle of companies.
- Payment processors that move purchases and prizes.
- Geolocation providers that check where players are.
- Game content suppliers and platform providers.
- Media affiliates that promote the sites.
Fines and Enforcement
Each violation brings a fine of $10,000 to $100,000. A violator can also lose a state gaming license or become ineligible for one.
The Gaming Commission, the State Police and the Attorney General can all enforce the law. They may investigate, subpoena records, hold hearings and send cease-and-desist letters. Fines fund problem gambling education and treatment.
Where Players Stand
The text of Section 912 does not name players or set a penalty for them. Its targets are the businesses on the other side of the screen.
The Attorney General’s office still treats the model as illegal under older state law. That view, stated in June 2025, is why a quiet law for players is not a green light.
How New York Got to a Full Ban
The New York sweepstakes casino ban did not arrive overnight. Enforcement started months before the statute did. The timeline shows each step from the official record and dated reports.
| Date | Event |
|---|---|
| March 4, 2025 | S5935 went to the Senate committee that handles racing and gaming bills. |
| June 6, 2025 | The Attorney General announced that 26 platforms would stop selling sweepstakes coins in New York. |
| June 11, 2025 | The Senate passed S5935A by 57 votes to 2. |
| June 17, 2025 | The Assembly passed the bill. |
| December 5, 2025 | The Governor signed it as Chapter 605, effective immediately. |
| June 4, 2026 | The session closed without a vote on S2614, the online casino bill. |
| September 9, 2026 | A leading sweepstakes operator agreed to pay $8 million to the Attorney General. |
The $8 Million Settlement
The Attorney General described the company as a leading operator of illegal online sweepstakes casinos. Its $8 million payment covers disgorgement, penalties and costs.
The Attorney General said some New Yorkers lost tens of thousands of dollars on those platforms. The release did not describe repayments to players.
Why New York Sweepstakes Casinos Closed Their Doors
Clovr checked the Terms of all 20 sites it reviews on October 21 and 22, 2026. Every one lists New York as off limits.
| Operator group | Sites | Where New York is excluded |
|---|---|---|
| UTech Solutions and A1 Development | 15 sites | Terms Version 2, clause 3.4 |
| A third operator | 1 site | Terms version 2.9, clause 3.4, dated October 5, 2026 |
| B-Two Operations | 4 sites | Prohibited Territories in Terms dated October 14, 2026 |
That is why this guide names no sweepstakes brand. Outside New York, Clovr’s state-by-state guide lists where each site operates.
Sweepstakes Coins Left in an Old Account
Sites that exited New York handle leftover balances under their own Terms. These steps keep you on safe ground.
- Do not buy coins from any site that still serves New York.
- Read the site’s Terms on closed or restricted accounts.
- Contact support in writing and keep the reply.
- Never pay a fee or buy a package to release a frozen balance.
- Save past purchase and prize records for tax season.
Online Casinos in New York | The S2614 Outlook
New York licenses no online casino in 2026. Senator Joseph Addabbo’s S2614 would change that, but it stalled again this year.
Addabbo said in May 2026 that the votes were not there to overcome a likely veto. The session ended on June 4, 2026, with no vote.
A new bill would need to start over in the 2027 session.
Taxes on Prizes in New York
Prizes from licensed games are taxable on both your state and federal returns. Gold Coin play creates no tax because it pays nothing.
- New York withholds state tax on Lottery prizes over $5,000, at the highest effective state rate.
- New York City and Yonkers residents also face city withholding on those prizes.
- Starting with 2026 prizes, the federal 1099-MISC threshold rises to $2,000 per payer, replacing $600.
- The IRS now limits chance-game loss deductions to 90%, and they cannot exceed the prizes you report.
Keep records of every prize and purchase. A tax professional can sort out how each payout is classified.
Help for New Yorkers
The state HOPEline answers around the clock, every day of the year. It is free, confidential and covers problem gambling.
- Call 1-877-8-HOPENY (467369).
- Text HOPENY (467369).
Trained staff connect callers with local treatment, regardless of ability to pay. Clovr’s responsible gaming guide lists more tools.
Sources Behind This New York Guide
Every source below was opened on October 22, 2026. Third-party trackers were used only to find them.
- The S5935A bill page and text on the State Senate website.
- Attorney General press releases dated June 6, 2025, and September 9, 2026.
- A Reed Smith client alert on the law, dated December 16, 2025.
- Reports on the 2022 sportsbook launch, the 2025 casino licenses and the 2026 S2614 vote count.
- The OASAS HOPEline page and Tax Department Publication 140-W.
- Proposed IRS reporting rules released April 17, 2026.
- Restricted-state clauses in each operator’s Terms.
- Rankings at mistery-boxes.com and mycardrips.com.
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Do New York players get in trouble for having played sweepstakes casinos?
No. Current law targets operators and supporting businesses, not ordinary players.
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How can I tell if an operator is compliant?
Check its currencies and redemption rules. A casino game using dual currencies with cash redemption violates Section 912.
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Will online casinos become legal in New York?
Not yet. S2614 remains in committee, with no confirmed passage date.
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Did the ban stop all sweepstakes?
No. Traditional promotions and authorized charity drawings remain allowed if they do not meet Section 912’s definition.
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When did the ban take effect?
December 5, 2025. It took effect immediately when Governor Kathy Hochul signed it.
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What can New Yorkers play instead?
Options include Gold Coin only social games, lawful skill games, regulated mobile sportsbooks, and the New York Lottery.
New York’s neighbors have taken different paths on sweepstakes casinos.
- The New Jersey sweepstakes guide covers the ban that took effect in August 2025.
- Clovr’s Connecticut guide explains the state’s October 2025 ban.
- The Pennsylvania sweepstakes guide covers the neighbor to the south and west.
- Clovr’s Vermont guide reviews the neighbor along the eastern border.
Clovr may earn a commission when you sign up through affiliate links on this page. This never affects our reviews, which stay independent and unbiased.
Sweepstakes play should stay fun. If you or someone you know needs support, visit the National Council on Problem Gambling at ncpgambling.org or call 1-800-GAMBLER.
