New York sweepstakes ban condemned by SGLA

In the wake of New York's ban on sweepstakes and social plus games, the Social Gaming Leadership Alliance (SGLA) has responded by labelling the decision 'rushed,' citing the loss of significant potential financial contributions to the state.

Social plus games, or sweepstakes, have been officially outlawed as Governor Kathy Hochul signed Senate Bill 5953 into law today, specifically targeting dual-currency model social casinos by imposing fines of between $10,000 and $100,000 on non-compliant operators in the state. This move has been met with contempt from the SGLA, which has highlighted the $230m in contributions made to the state's economy by 'social plus' games in 2024.

The alliance also outlined that in a recent public survey 84% of US-based participants supported the regulation and taxation of social plus games.

Further, the SGLA has theorized that under a regulated framework, sweepstakes games could have generated more than $80m in annual state revenue in the Empire State. However, unlike California's recent sweepstakes ban which will come into force in the new year, New York's SB 5953 is effective immediately, meaning that sweeps have reached the end of the road in another state.

Speaking on this latest news, SGLA Executive Director Jeff Duncan said: "Players, operators, and voters all made their position clear; they didn't want a ban on this popular, safe form of entertainment. Governor Hochul had the opportunity to protect consumer choice and New York's economic interests. Instead, she chose a short-sighted path, closing the door on choice, innovation and hundreds of millions in economic activity."

This latest development comes within days of a new anti-sweepstakes bill, also protested by the SGLA, being introduced up the East coast in the state of Maine. Elsewhere, last week, the state of Florida also sought to bring an end to its sweepstakes industry through anti-sweeps House Bill 591.