Sweepstakes casinos are disappearing from New York, and they’re disappearing fast.
Just this week, players across the state started receiving notices: their favorite sites are logging off for good. PlayFame, McLuck, and Hello Millions all confirmed they’ll shut down access for New York users by April 30, referencing “a difficult decision” tied to the state’s changing legal climate.
It may look like operators are surrendering, but behind the scenes, it’s anything but over. While sites are stepping back for now, the Social and Promotional Games Association (SPGA) is actively pushing back, lobbying regulators, and trying to stop New York from creating a ripple effect that could spread nationwide.
The Mass Exit, Explained
It started with emails.
“We are disappointed to advise that as of April 30, players in New York will no longer have access to our social gaming services,” wrote PlayFame. Several other sweepstakes sites delivered nearly the same message: access is ending, and time is running out. Some, like McLuck, said they’d stop accepting purchases as early as April 3, giving players until the end of the month to redeem tokens or cash out prizes.
These exits aren’t just a coincidence. They’re a direct response to growing pressure from Albany, where lawmakers are advancing a bill that could effectively outlaw the business model sweepstakes sites are built on.
One company, though, is still holding its cards. VGW, the Australian giant behind Chumba Casino, LuckyLand Slots, and Global Poker, has yet to make a move. No announcements, no emails. For now, it looks like VGW is just playing wait-and-see, watching to see how things go before it decides to fold or double down.
What’s Triggering the Retreat?
At the center of all this is Senate Bill 5935, introduced by Sen. Joe Addabbo Jr., who chairs the Racing, Gaming and Wagering Committee.
It’s not a warning shot, it’s a direct hit on how sweepstakes casinos operate.
Here’s what the bill does:
- Bans any platform using a “dual currency” system, where players buy one type of token and can later redeem another for real-world prizes, which is the exact model most sweepstakes sites rely on.
- Hits operators, affiliates, advertisers, and payment processors with fines up to $100,000 per violation. This turns up the heat not just on the platforms, but anyone who helps keep them running or provides any sort of service to them.
- Draws a hard line: this isn’t “just gaming for fun”, it’s gambling. And New York wants it gone.
SB 5935 cleared committee earlier this month and now sits on the Senate floor, waiting for a vote. And while it’s not law yet, the message is loud and clear: New York is getting ready to shut this down.
The SPGA Isn’t Done Fighting
Even as operators have started pulling out, their trade group, the Social and Promotional Games Association (SPGA), isn’t backing down.
This week, the SPGA released a statement confirming that it’s in talks with the New York State Gaming Commission, hoping to find a path forward before SB 5935 becomes law.
“We saw the same thing happen with fantasy sports,” a spokesperson said. “It takes time, dialogue, and smart policy — but it can be done.”
Their argument is that if these platforms were already illegal, there’d be no need to pass a bill to ban them. According to them, the fact that SB 5935 exists, proves that current law doesn’t clearly prohibit sweepstakes gaming and that operators aren’t breaking the law, they’re working around it.
That kind of legal logic may be questionable, but it has held up before. In other states, courts have sided with sweepstakes platforms in civil cases, noting that if a law has to be rewritten or clarified, it’s because the original one didn’t apply cleanly. It’s not a defense of the business model, but it’s enough to make enforcement tricky. A great example is when a federal judge in Washington dismissed a case against VGW in 2022, finding that the company’s use of virtual currency and optional free entries meant it didn’t clearly break existing gambling laws. The state later updated its code to close the gap, but the case showed how slow and complicated enforcement can be when the rules aren’t airtight.
The SPGA also warned that if lawmakers cast the net too wide, they could end up catching more than just sweepstakes casinos — including popular mobile games like Candy Crush and Monopoly Go, or rewards programs from brands like Starbucks and Marriott that use prize-based promotions to drive engagement.
In other words: this isn’t just about banning one corner of online gambling. It’s about how far the definition of ‘gambling’ might stretch, and who might get caught in the net.
What’s at Stake for Players, Platforms and New York
If SB 5935 passes, nearly every major sweepstakes casino will be banned outright in New York. Sites won’t just be blocked, they’ll face severe penalties for operating in the state. And it won’t stop there: third parties like payment processors, affiliate marketers, and ad networks could be held liable too.
That kind of pressure is why so many are leaving now, before the law kicks in.
But there’s more on the line than tokens and sweep coins. These platforms have millions of users across the U.S., and what happens in New York could set the tone for other states ready to follow its lead.
If lawmakers get it wrong, they could also accidentally sweep up legitimate rewards programs and casual mobile games, triggering unintended consequences that stretch far beyond the casino space.
So… Is This the End?
Right now, sweepstakes gaming in New York is in freefall, but it’s not dead yet.
SB 5935 still needs a full Senate vote. VGW is still operating in the state. And the SPGA is still working the back channels, hoping to slow the bill or reshape it before it’s too late.
One thing’s for sure: April 30 isn’t just an exit date — it’s a deadline. For operators. For lawmakers. And for a multi-million-dollar industry that’s suddenly fighting for its future.