New York Shuts Down 26 Sweepstakes Gambling Operators

Key Points

• The New York AG and Gaming Commissions issued cease-and-desist orders to 26 sweepstakes gambling operators. 

• All 26 platforms agreed to end the sale of sweepstakes coins in New York.

• “These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said NY State Gaming Commission Chairman Brian O’Dwyer.

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New York Attorney General Letitia James has announced that – in conjunction with the New York State Gaming Commission (NYSGC) – they have sent cease-and-desist orders after they “identified 26 online platforms offering players slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes.”

AG James sent the letters to the operators of these platforms, demanding that they stop all prohibited gambling activity in the state. Somewhat surprisingly, all 26 platforms have agreed to end the sale of sweepstakes coins in New York, per the press release. 

“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” said Attorney General James. “I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”

“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said New York State Gaming Commission 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. We encourage those of age who wish to gamble to do so with legal operators.”

“At a time when illegal gambling, underage participation, and identity theft are soaring, it is deeply concerning that prohibited, unregulated, and unenforceable gambling entities are providing easy access to illegal gaming sites and obtaining personal information of unsuspecting New Yorkers,” said Senator Joseph P. Addabbo, Jr. “These so-called sweepstakes casinos not only put individuals at risk of fraud and financial exploitation, but they also create dangerous pathways for gambling addiction, especially among minors. This is not about taking away anyone's livelihood, it's about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals. I commend Attorney General James and her office for their dedication towards protecting our residents and for recognizing the urgent risks posed by these illegal platforms.”

Concurrently, a sweepstakes prohibition bill has advanced in the NY House, with companion legislation awaiting vote in the state Senate. 

Sweepstakes platforms shutting down coin sales in NY

The 26 operators that have agreed to end their sale of sweepstakes coins in New York are: 

• Chanced

• Chumba

• DingDingDing

• Fliff

• Fortune Coins

• Fortune Wheelz

• Funrize

• FunzCity

• Global Poker

• Golden Hearts Games

• High 5 Casino

• Jackpota

• Luckyland

• McLuck

• Mega Bonanza

• NoLimitCoins

• Play Fame

• RealPrize

• Sidepot

• SpinBlitz

• Sportzino

• SweepSlots

• Sweeptastic

• TaoFortune

• Yay Casino

• Zula Casino

Other states cracking down on sweepstakes platforms

But New York is not the only state targeting these platforms. A bill to ban online sweepstakes casinos and simulated gambling platforms in Connecticut passed unanimously in both the Senate and House, and now just needs the Governor’s signature.

Louisiana’s version also passed unanimously but awaits Gov. Jeff Landry’s signature, and there are curious reports that he plans to veto it.

Nevada and Montana already officially passed sweepstakes prohibition bills in 2025. 

Similar efforts in Arkansas, Mississippi, Maryland and Florida ultimately failed to be passed into law this year despite seemingly wide support. 

Sweepstakes operator associations respond

The Social and Promotional Games Association (SPGA) responded to the news with a statement that included: “Our members operate within well-established legal frameworks, pay appropriate taxes, and adhere to a strict code of conduct that includes consumer protections and responsible gaming practices… Sweepstakes promotions are not gambling under federal law and are legally permitted in the overwhelming majority of US states, including New York. Despite multiple attempts to engage directly with New York lawmakers and regulators, our outreach has gone ignored.”

Another newly formed association called the Social Gaming Leadership Alliance (SGLA) also responded, touting its members’ “comprehensive consumer protection standards,” and the difference they claim exists between sweepstakes and gambling: “Our partners utilize established sweepstakes promotional frameworks which are distinct from gambling because they are designed to promote a bona fide service (the play-for-fun social games) and always provide genuinely free participation methods through Alternative Methods of Entry (AMOE), including daily rewards and on-request (such as mail-in) options.”

They added: "While we disagree with the characterization of our members' lawful sweepstakes operations in today's enforcement action, we look forward to working with legislators and regulators to develop a comprehensive regulatory structure that protects consumers while preserving innovation," said SGLA Executive Director Jeff Duncan. "We believe there is an opportunity to create a framework that provides appropriate oversight, mandates robust consumer safeguards, and recognizes the legitimate use of sweepstakes promotions."

Gambling addiction treatment in New York and across the U.S.

Whether through regulated platforms or sweepstakes, online gambling can have significant negative consequences in many individuals’ lives. However, nowadays there are specialized treatment options available for those who may need support. 

Birches Health offers gambling-specific virtual care conducted by specially certified therapists trained in treating this type of addiction. Birches also helps remove the traditional barriers to treatment for gambling and gaming addiction, offering support anytime, anywhere. Care can also be covered by insurance, as Birches partners with all major insurance companies. To get started with Birches or learn more about the gambling addiction treatment program, you can:

• Book an appointment 

• Call 833-483-3838

• Email help@bircheshealth.com