Updated October 2026
New York Banned

Are Sweepstakes Casinos Legal in New York? (2025 Ban)

MB
Marcus Bennett
Compliance & News Editor, US
Updated: September 2026
6 min read

New York has banned online sweepstakes casinos. S5935-A became law as Chapter 605 of 2025 on December 5, 2025 and took effect immediately. The major brands had already left New York by mid-2025, and in September 2026 VGW agreed to pay $8 million to settle with the Attorney General. This guide covers what the law says, what it means for players with old balances, and the legal alternatives for New York residents.

Sweepstakes casinos are banned in New York. S5935-A (Chapter 605 of 2025) became law on December 5, 2025 and took effect immediately. It bans online sweepstakes casinos that use a dual-currency model, with penalties of $10,000 to $100,000 per violation, and it also covers payment processors, geolocation providers, game suppliers, and media affiliates that support them.

Real-money online casinos are not legal in New York either. Online sports betting has been legal since January 2022 under the New York State Gaming Commission.

For specific legal questions about gambling or sweepstakes in New York, consult the Office of the Attorney General (https://ag.ny.gov/) or a licensed attorney. SpinVerdict does not provide legal advice.

Minimum age requirements

Age limits are moot while the ban is in force, because there is no legal online sweepstakes casino operating in New York. Across the US, most major brands now require players to be 21 or older, and a few smaller sites accept 18+.

No. The major operators stopped Sweeps Coin play in New York in spring 2025, before the law passed, and none of them accepts New York players now. If a site still lets you sign up from a New York address, it is operating against state law; avoid it.

On September 9, 2026, VGW agreed to pay $8 million to settle with Attorney General Letitia James. It is permanently barred from cash-redeemable sweepstakes in New York, must honor Sweeps Coin redemption claims filed within one year of August 31, 2026, and may continue Gold Coin play with no cash prizes. VGW did not admit liability.

Taxes on sweepstakes winnings in New York

Sweepstakes prize winnings are taxable as "other income" under US federal law (IRS Publication 525). Operators typically issue Form 1099-MISC if your cumulative redemptions from that operator hit $2,000 or more in a calendar year (the threshold was $600 for payments made before 2026). You're responsible for reporting prize income on your federal return regardless of whether a 1099 is issued.

New York imposes state income tax on top of federal. Your sweepstakes prize income is typically treated as ordinary income at the state level. Consult a tax professional for your specific situation.

Responsible play resources in New York

The federal 1-800-GAMBLER 24/7 helpline (operated by the National Council on Problem Gambling) is available to anyone in the US, including New York residents. State-specific helpline for New York: 1-877-8-HOPENY (New York).

Self-exclusion in the sweepstakes model is per-operator, there is no nationwide equivalent of the UK's GamStop. NCPG maintains a state-by-state directory of state-level self-exclusion programs and resources at ncpgambling.org/programs-resources/state-resources.

If you or someone you know is struggling with gambling, call 1-800-GAMBLER. Support is free, confidential, and available 24/7.

New York sweepstakes FAQ

Q: Are sweepstakes casinos legal in New York? A: No. New York banned them under S5935-A (Chapter 605 of 2025), which took effect on December 5, 2025.

Q: Can I still sign up or redeem Sweeps Coins in New York? A: No major operator offers cash-redeemable Sweeps Coins to New York players. If you had Sweeps Coins at a VGW site, its settlement with the Attorney General requires it to honor redemption claims filed within one year of August 31, 2026.

Q: When did the New York ban take effect? A: Immediately, on December 5, 2025, when S5935-A became law.

Q: What can I play legally in New York? A: Online sports betting through licensed apps, and in-person play at the state's commercial, video lottery, and tribal casinos.

Q: Do I owe taxes on sweepstakes winnings in New York? A: Federal income tax applies in all cases. New York also imposes state income tax on sweepstakes income.

MB

Marcus Bennett

Compliance & News Editor, US

Marcus covers US sweepstakes law and runs SpinVerdict's US news desk. He tracks state-by-state availability, sweepstakes promotional law, and regulator actions, and owns the editorial line on responsible play, including 1-800-GAMBLER and the NCPG. Every news item is sourced to a primary document.

8 Years in iGaming