The Social Gaming Leadership Alliance (SGLA) is ramping up efforts in New York to oppose legislation that would ban sweepstakes casinos. The group has launched a grassroots campaign urging Governor Kathy Hochul to veto the bill, which passed the legislature in June, but remains unsigned.
As the industry awaits Governor Gavin Newsom’s decision following the passage of AB 831 in California, the SGLA has turned its attention to New York.
Through its Quorum advocacy platform, the group has launched a campaign encouraging New Yorkers to reach out to Gov. Hochul by phone, email, and social media. By September 23, more than 2,000 actions had been recorded.
The SGLA argues that New York would benefit more from regulating and taxing these games than from banning them outright, pointing to polling that suggests strong public support for modernization.
Gov. Hochul has yet to take action on the bill, which passed in June and was followed by 26 cease-and-desist letters issued by the state Attorney General. SGLA views both the governor’s delay as a potential sign of hesitation, giving advocates a small but important window to influence her decision.
These latest efforts come after the SGLA had already been active in pushing back on a New York sweepstakes ban, but now they’ve just ramped up the process.
A veto from Governor Hochul would not guarantee smooth operations for sweepstakes casinos in New York, especially with cease-and-desist letters having already been sent by the Attorney General. These actions create significant legal uncertainty, making the market difficult to navigate even without a formal legislative ban in place.
Some of the sweepstakes casinos targeted in the cease-and-desist letters include Chanced, NoLimitCoins, McLuck, Sportzino, and 20+ others.
However, even with this legal uncertainty, some operators may choose to return to the state if Gov. Hochul vetoes the bill, weighing the risks of enforcement against the potential rewards of serving one of the largest markets in the country. For these platforms, the absence of a signed law could provide enough of a gray area to justify resuming operations, but it would come with heightened scrutiny and operational risks.
For New Yorkers, the outcome of this bill will directly affect access to sweepstakes casinos. If Gov. Hochul signs the legislation, players will lose legal access to dozens of platforms that currently offer slots, table games, and poker under the sweepstakes model.
SGLA argues that regulation could strike a better balance by giving players safe, legal options while generating tax revenue for the state. Without clear legislation, however, players may be left in a confusing environment where some sites exit the market while others test the limits of enforcement.
Regulated online casinos are currently unavailable in New York, so if sweepstakes casinos are banned, that would leave no option for players. That puts them at risk of moving to offshore platforms, which don’t have the same safeguards in place.
