Gov. Kathy Hochul’s reelection leaves New York’s sweepstakes casino ban exactly where it was, and leaves online casino legalization just as unsettled. Hochul beat Republican Bruce Blakeman on November 3, with the Associated Press calling the race as polls closed.
The sweepstakes ban itself isn’t in doubt. What remains open is whether New York will ever replace it with a licensed online casino market, and the governor hasn’t said she’d support one.
Hochul signed Senate Bill 5935A in December 2025, formally banning dual-currency sweepstakes games in the state. The bill was sponsored by Sen. Joseph Addabbo Jr., who chairs the Senate Racing, Gaming and Wagering Committee, and passed both chambers with near-unanimous support.
The law came after months of enforcement. According to the attorney general’s office, a June 2025 round of cease-and-desist letters led 26 sweepstakes platforms to stop selling coins in New York. Hochul’s second term keeps that administration in place.
The law prohibits online sweepstakes games that award cash prizes. Summaries of the bill say it reaches operators, suppliers, payment processors and media affiliates, with fines of $10,000 to $100,000 per violation.
Enforcement has continued since. In September, Attorney General Letitia James announced an $8 million settlement with VGW, the operator behind Chumba Casino, Global Poker and LuckyLand Slots. The office said VGW ended coin sales in New York after receiving cease-and-desist letters.
Addabbo has filed an online casino bill each year since 2022, and none has reached a floor vote. His latest, S2614, would let casinos, online sportsbook operators, tribes and video lottery facilities apply for iGaming licenses. The 2026 session ended in June without a vote on it.
Legalization would still need the governor’s signature. Hochul left online casinos out of her 2024 executive budget, and a spokesperson has said only that she will review any legislation that passes both houses.
Labor groups representing casino workers have opposed expansion, arguing online play could pull customers away from physical properties. Hochul’s administration approved three downstate casino licenses in December 2025, keeping land-based expansion in the spotlight.
The same administration is also pursuing prediction markets. Hochul and James announced a lawsuit against Kalshi on July 31, and a similar suit against Polymarket followed in September.
Blakeman criticized Hochul’s decision not to pursue a revenue agreement with Kalshi during the campaign. With his loss, the state’s enforcement posture toward unlicensed products is likely to continue.
For sweepstakes operators, the practical outlook is unchanged. The ban stays in force, the attorney general’s office remains active, and no legalization path has been offered.
Lawmakers return in January, and no licensed real-money online casino operates in New York. Addabbo has said he plans to keep filing iGaming legislation, and he has argued publicly that a bill needs the governor’s buy-in before it can pass. Whether Hochul’s second term shifts the tone remains the open question.
The ban’s staying power, and any enforcement action under S5935A’s per-violation fines, will matter more to sweepstakes operators than the iGaming fight.
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