Online Sweepstakes Casinos Seeing Bill Action In NY, CT, LA

• In a pivotal week for online gambling regulation, New York and Connecticut moved to outlaw sweepstakes casinos through sweeping legislation, while Louisiana rejected new laws in favor of stricter enforcement under existing authority.

NEW YORK – Three states have each taken different approaches toward regulating or banning online sweepstakes casinos this week. While Connecticut and New York are actively moving to shut the sports betting markets down through legislation and enforcement, Louisiana is doubling down on regulatory discretion rather than new laws.

New York Gets Senate Approval

On Friday, the New York State Senate overwhelmingly passed Senate Bill 5935A, a measure designed to outlaw online sweepstakes casinos and dual-currency sportsbooks. Sponsored by Sen. Joseph Addabbo Jr., the bill targets platforms that simulate casino-style gambling and allow users to purchase virtual currencies redeemable for cash.

“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said New York State Gaming Commission Chair Brian O’Dwyer, echoing support for the crackdown.

The bill, passed in a 57-2 vote, now heads to the Assembly. If signed into law, it would impose fines up to $100,000 and threaten the gaming licenses of violators, including operators, payment processors, and affiliates.

This legislative effort follows a high-profile enforcement push by New York Attorney General Letitia James, who last week issued cease-and-desist orders to 26 platforms, all of which have agreed to cease New York sports betting and gambling operations within the state.

Connecticut Becomes Second State to Enact Full Ban

Just days earlier, Connecticut Gov. Ned Lamont signed Senate Bill 1235 into law, making Connecticut the second state in the nation (after Montana) to formally ban sweepstakes casino operations.

The legislation, which takes effect October 1, 2025, bans any simulated gambling device or online sweepstakes that operates without a proper state gaming license. It passed both chambers unanimously, 146-0 in the House and 36-0 in the Senate.

Violators will face professional gambling penalties, and unlicensed sweepstakes operations can now be classified as “common nuisances” subject to seizure.

Notably, the Connecticut sports betting bill carves out an exception for grocery chains with five or more locations, allowing them to run sweepstakes tied to store discounts rather than cash prizes.

Still, the Social and Promotional Games Association (SPGA) criticized the move, arguing that lawmakers failed to distinguish between unregulated gambling and legitimate, free-to-play promotions.

Louisiana Governor Landry Vetoes Bill

In stark contrast, Louisiana Gov. Jeff Landry vetoed SB181. This bill, which passed both the House and Senate unanimously, would have criminalized sweepstakes and offshore gambling operators and suppliers.

Landry defended the veto by arguing that existing Louisiana sports betting laws already prohibit such activities, and that the Louisiana Gaming Control Board (LGCB) has sufficient authority to enforce them.

The stakes for operators are rising quickly, as the industry faces increasing scrutiny from lawmakers, regulators, and trade groups across the U.S. With multiple states with legal sports betting now actively pushing bans, and others like Louisiana emphasizing enforcement over legislation, the future of sweepstakes casinos may well depend on how quickly the industry adapts… or how far the crackdown spreads.

News tags: Brian O’Dwyer | Connecticut | CT SB 1235 | Jeff Landry | Joseph Addabbo | LA SB 181 | Louisiana | Louisiana Gaming Control Board | Ned Lamont | New York | NY SB 5935A | Social and Promotional Games Association