A new report warns that New York could lose more than $230 million per year if lawmakers move forward with a proposed ban on sweepstakes casinos. The estimate, released by the Social Gaming Leadership Alliance (SGLA), suggests the measure could also affect hundreds of local businesses and payment processors that benefit from the industry.
According to the SGLA, New York could gain roughly $80 million in new annual revenue if it regulates sweepstakes casinos instead of banning them outright.
The group’s economic analysis recommends a licensing framework for regulation. This includes operator registration fees, taxes on in-game purchases, and increased advertising opportunities. This would create a steady source of income for the state while maintaining consumer protections.
The SGLA also argues that regulation would allow New York to capture economic activity currently flowing through unregulated platforms, turning a potential loss into a sustainable revenue stream.
If sweepstakes casinos were banned in New York, users would only be able to participate in iGaming through offshore sites. Regulation would prevent this from happening.
The SGLA says public opinion strongly favors regulation over prohibition. In a recent survey cited by the group, 84% of Americans said they would rather see lawmakers update and modernize sweepstakes laws than impose outright bans on the industry.
The survey is another example of efforts taken by the SGLA to advocate for sweepstakes casinos. The SGLA had already pushed back on a sweepstakes ban in New York earlier this year.
The hope is that bringing forth data that shows support for sweepstakes casinos could help influence Gov. Kathy Hochul not to sign bill S5935A to ban these platforms.
Gov. Hochul has yet to signal whether she will sign New York’s anti-sweepstakes bill, leaving the state’s online gaming industry in a prolonged state of uncertainty. This is compounded by the fact that New York is a major market and the sweepstakes industry just lost access to another significant source of revenue with the California sweeps ban.
The delay could stem from competing political pressures, with lawmakers urging swift action to curb unregulated gaming, while business groups and unions warn of lost jobs and tax revenue if the measure becomes law.
The governor may also be waiting to see how similar legislation plays out in neighboring states before making a final move. For now, Hochul’s silence has created a standstill, as both supporters and opponents brace for a decision that could reshape New York’s digital gaming market and force sweepstakes operators to adapt to these conditions.
Expect a decision from Gov. Hochul before the end of the year, likely after the state’s November budget sessions conclude.
