New York state’s anti-sweeps bill, S5935, has now cleared both chambers of the legislature, and it’s heading straight to the Governor’s desk for the final sign-off. After the state declared war on sweepstakes casinos with cease-and desist letters recently, this looks to be a formality.

The state lawmakers worked hard to push this bill through. While the legislative session officially ended on June 17^th, the bill passed the Assembly on June 20^th. Now it has gone to State Governor Kathy Hochul, which is the final step before it passes into law.

There is no grace period on the bill, and it will go into effect immediately.

What’s in the Bill? Definitions, Fines, and Enforcement

S5935A defines sweepstakes casinos as any dual-currency internet game that simulates casino play and offers the chance to redeem for real cash. That includes slot, table games, video poker, bingo and sports betting.

The bill also gives the New York State Gaming Commission broad authority to decide what qualifies as a “dual-currency” system. That’s not great news if you’re an operator looking for a technicality to slip through.

As for penalties? It’s a $100,000 fine per violation, loss of any gaming license eligibility. Add in the threat of state police and the Attorney General’s office on your tail, and it’s easy to see why operators are already heading for the exits.

Attorney General is Already on the Warpath

Earlier this month, AG Letitia James dropped the hammer on 26 sweepstakes casinos with cease and desist letters. According to her office, they all complied. Now, with S5935’s legal teeth, enforcement gets even stronger. The bill explicitly names the state gaming commission, state police, and AG’s office as the enforcers. That’s a three-pronged crackdown approach we’ve seen popping up in other states like Florida and Montana.

The Social and Promotional Games Association (SPGA) has officially called on Governor Hochul to veto the bill, describing it as: “A short-sighted bill that threatens to kill investment, stifle innovation, and undermine New York’s position as a national leader for tech and digital entertainment.”

They’re also object to the State Gaming Commission being able to define what counts as an illegal sweepstakes game, calling it dangerous and undemocratic. This objection is unlikely to have a major impact, though.

Addabbo: Sweeps Cannot be Allowed

Senator Addabbo, who introduced the anti-sweeps bill, says that sweepstakes casinos cannot be allowed to burrow in to New York and they could undermine the future of iGaming in the state.

“Until we legalize online gaming in New York, we do not want the illegal market to expand, to grow, to target minors or those that have problems,” he said. “It’s a question of not if, but when. Eventually, iGaming will happen in New York.”

What’s Next for the New York Anti Sweeps Bill?

There’s just one step left and that is Governor Hochul’s signature. While Louisiana’s governor vetoed their bill at the last hurdle recently, the prevailing mood in New York suggests that won’t be the case here.

Unless something changes fast, this bill is set to become law immediately. And once it does, New York will officially become one of the toughest states in the country on sweepstakes casinos.