New York State Attorney General Letitia James is taking a stance against online sweepstakes casino operators.
The Office of the Attorney General (OAG) announced it is prohibiting online sweepstakes casinos from operating in New York.
State gaming law bans online wagering platforms from offering gambling involving risking something of value, including virtual currencies offered by sweepstakes casinos. The OAG is collaborating with the New York State Gaming Commission (NYSGC) to identify and shutter the operations of sweepstakes casinos.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said NYSGC Chairman Brian O’Dwyer. “I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market.”
New York regulators and lawmakers have taken a stance against online sweepstakes casinos as they allegedly operate in New York without regulatory oversight and proper auditing.
The OAG and New York’s gaming regulator identified 26 online platforms in New York that offer gambling using virtual coins that can be redeemed for cash and prizes. The OAG sent the operators cease-and-desist letters and all 26 of them complied, reported James.
The group of sweepstakes casino operators included Fliff, Fortune Coins, High 5 Casino and Sportzino. VGW’s Chumba Casino, Global Poker and Luckyland also complied.
Last month, VGW announced that it planned to phase out its virtual currency offerings in New York by August after High 5 Casino and other operators shut down sweepstakes in the state. VGW also shuttered its sweepstakes casinos in Connecticut, Michigan, Nevada and Washington.
SPGA responds to C&D orders
The cease-and-desist letters sent by James garnered a response from a trade group.
The Social and Promotional Games Association is “disappointed by James’ mischaracterization of legal sweepstakes platforms as ‘illegal’ and ‘dangerous.’”
The advocacy group said it made several attempts to engage with New York lawmakers and regulators on sweepstakes casinos but its efforts were ignored, leading to regulatory action.
“It’s disappointing to see a blanket enforcement action taken without meaningful dialogue or effort to distinguish between compliant companies and truly illegal operators,” said the association in a statement. “This approach stifles innovation, limits consumer choice, and disregards the legal status of sweepstakes promotions.”
The Social Gaming Leadership Alliance (SGLA) also opposes James’ stance against sweepstakes casinos with support from founding partner VGW.
“The SGLA remains committed to collaborative engagement with New York officials to develop balanced regulations that serve the interests of consumers, the state, and the digital entertainment industry,” said SGLA Executive Director Jeff Duncan. “We believe productive dialogue can lead to solutions that enhance consumer protection while supporting innovation and economic growth.”
New York sweepstakes legislation
Several New York lawmakers filed bills in 2025 to ban online sweepstakes casinos.
Last month, the Assembly Racing and Wagering Committee approved Assembly Bill 6745 as a measure that defines and bans online sweepstakes games. The bill bans sweepstakes games that simulate casino-style games, video poker, bingo, lottery games or sports betting. Its ban on sweep-style lottery games applies to draw contests, keno and instant win games. Entities that violate the bill’s standards are subject to fines and license revocation. The fines range between $10,000 and $100,000 for each violation.
Last week, New York’s Assembly Ways and Means Committee passed A6745 by a 35-0 vote. The bill was referred to the Assembly Rules Committee for further consideration.
Sen. Joseph Addabbo also proposed a measure involving online sweepstakes casinos.
Earlier this year, Addabbo introduced Senate Bill 5935 as a measure that also defines and prohibits online sweepstakes casinos. It defines online sweepstakes as a game, contest or promotion that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash price, cash award or cash equivalents.”
Under SB5935, the state’s gaming regulator is tasked with determining what sites do and do not qualify as dual-currency offerings. The bill had its third Senate reading in April but no further progress has been made at the time of writing.