New York Sweepstakes Casinos

Sweepstakes casinos are available in New York and operate around existing sweepstakes laws. Sweeps sites offer casino-style games with Gold and Sweeps Coins, which can be used to explore slots, table games, and live dealers. No purchase is necessary, allowing these sites to operate within the current framework.

Recent legal challenges within the Senate and Assembly may negatively affect the sweepstakes casino industry and its operations. SB 5935, which just passed a Senate Committee unanimously, seeks to penalize operators and suppliers within the Sweepstakes industry.

If approved, the new law will significantly impact the NY sweeps market and could lead to similar legislation in other states.

Due to these recent legislative activities, several sweepstakes operators have already begun exiting the New York market.

🟡 New York sweeps status

📋 List of sweepstake sites accepting NY

⚖️ Are sweepstake casinos legal in NY?

Sweepstakes operators currently offer services in New York based on a no-purchase method. Players can join for free and use Gold and Sweeps Coins provided by the operator to access slots, blackjack, roulette, and other available games. 

Operations differ from real-money iGaming, as players are not obligated to purchase coins to play. However, the sweepstakes industry has become so popular that it now faces opposition from regulators and tribes. Additionally, various class-action lawsuits have been launched, though none have had success to date.

In New York, Senator Joseph Addabbo Jr. introduced SB 5935 to try to gain control over the booming sweepstakes industry. The bill would impose fines against operators and suppliers starting at $10,000 and going as high as $100,000. Carrie Woerner introduced an accompanying bill in the Assembly, but that measure has yet to be heard by a committee. 

Details surrounding SB 5935

Senator Addabbo Jr. sponsors SB 5935, which is currently on the Senate Floor calendar. It must be voted on by the full senate, receive a majority vote, and pass in the Assembly to move to the Governor for consideration.

The bill prohibits online sweepstakes games and revenue from illegal markets, sets penalties and provides for enforcement of the provisions. SB 5935 would amend the racing, pari-mutuel wagering, and breeding law relating to these.

📖 New York gambling laws

New York lawmakers frequently discuss the prospect of allowing real-money online casinos in the Empire State. For now, however, sports betting is the only form of full-scale online gambling permitted in New York.

Real-money online casinos could certainly get the green light in the Empire State at some point. If that were to happen, the actual launch of online casinos would likely still be several years down the road.

Keep in mind that sweepstakes casinos and real-money online casinos are two different kinds of gaming platforms in a legal sense. Sweepstakes gaming is legal in New York right now, and that category of gaming includes sweepstakes casinos.

Let’s take a look at the laws that govern sweepstakes gaming in New York.

🇺🇸 New York sweepstakes at the Federal level

Sweepstakes casinos are available in 47 states, and those states generally follow federal sweepstakes laws very closely. As such, sweepstakes laws are very similar from state to state.

However, there are a few differences in sweepstakes laws in some states. Some states apply a state income tax on winnings in addition to the federal tax you have to pay in all states.

Federal sweepstakes laws require sweeps contests and casinos to meet the following criteria:

• A sweepstakes is a promotion in which prizes are awarded by chance rather than skill
• Sweepstakes can’t require a purchase as a condition for entry
• Sweepstakes must have official rules, and those rules can’t change once the contest has begun
• Sweepstakes winnings of $5,000 or more are subject to a 24% estimated income tax on the federal level

New York and Florida place a restriction on the maximum amount you can win in a single jackpot or bet at a sweepstakes casino. The maximum possible win is $5,000 (or the Sweeps Coin equivalent of $5,000).

Any amount won that’s over $5,000 will only be credited for $5,000 at a New York sweeps casino.

🧍Responsible gambling in New York

New York’s sweepstakes casinos offer an alternative to traditional online gambling, but responsible gaming practices remain crucial. For those facing challenges with online gambling, several support options are available:

• New York State Gambling Commission
• New York Council on Problem Gambling
• National Council on Problem Gambling – New York 
• New York Problem Gambling Helpline
  • Call: 1-877-8-HOPENY
  • Text: HOPENY

Final thoughts

New York residents might eventually see the launch of traditional real-money online casinos. For now and the foreseeable future, however, sweepstakes casinos provide the best alternative for players looking for casino-style action in NY.

We strive to promote only the best legitimate sweeps casinos here at Sweepsy. Check back with us often for the latest on the New York sweepstakes casino industry.