Early in June, New York Attorney General Letitia James took action against 26 online sweepstakes casino operators. Her office, working with the New York State Gaming Commission, sent cease-and-desist letters to these companies.
These platforms offer games like slots, table games, and sports betting using virtual coins that players can exchange for cash or prizes. New York law says online gambling, where people risk something valuable like these coins, is not allowed.
The state believes these sites operate without proper rules, which could lead to unfair games, fraud, or even money laundering. Each of the operators agreed to stop selling sweepstakes coins in New York. The Attorney General also told people to stay away from these sites to avoid risks.
The Social Gaming Leadership Alliance (SGLA), a group representing online social gaming and sweepstakes companies, responded on June 10, 2025. Since its founding, the SGLA has advocated for fair policies across the U.S. and engaged with lawmakers to clarify that sweepstakes differ from gambling due to free entry options.
They don’t agree with the state’s view that sweepstakes are illegal gambling, and want to work together to alleviate concerns.
The SGLA says their platforms follow U.S. laws by offering free ways to play, like daily rewards or mailing in to enter, called Alternative Methods of Entry (AMOE). AMOE’s were created under the premise that these options aim to provide players a lower bar of entry compared to traditional online casinos.
Despite sweeps casinos offering pay-to-play, the SGLA says that virtual coins bought in games can’t be turned into cash or prizes. Instead, rewards come from separate sweepstakes promotions.
The SGLA believes they can work with New York officials to establish fair rules that could protect players without restricting users too much. Jeff Duncan, the SGLA’s Executive Director, said they disagree with the state’s actions but want to work together.
The group thinks clear regulations could address the state’s concerns without harming the digital entertainment industry. They point out that their sweepstakes model is like promotions used by big brands like DraftKings and FanDuel. The difference, in their argument, is how the operators are perceived.
The SGLA encourages lawmakers to recognize the value of these platforms and develop regulations that promote innovation and player choice while maintaining balanced oversight for online casino legislation.
With a network spanning major gaming platforms, the SGLA’s influence reaches millions of users and has influenced regulations in several states. However, New York is already looking at new laws directed towards sweepstakes casinos.
In March 2025, Senator Joseph Addabbo introduced a bill, S5935, to ban online sweepstakes games that use dual-currency systems mimicking casino games.
The bill, backed by the Attorney General, passed the Senate Racing, Gaming, and Wagering Committee and is waiting for more steps. A similar bill, A6745, is in the Assembly. These laws aim to stop unregulated platforms that might reach minors or skip consumer protections.
The SGLA’s challenge shows there’s a bigger debate about how to manage new kinds of online entertainment while keeping them safe and legal.
