Gov. Kathy Hochul defeated Republican Bruce Blakeman on Nov. 3, leaving New York’s ban on dual-currency sweepstakes casinos in force and not resolving the long-running effort to legalize real-money online casino games. The state still has no licensed real-money online casino, despite its established mobile sports-betting market and approval of three downstate casino projects.
Hochul signed Senate Bill 5935A in December 2025, formally banning dual-currency sweepstakes games without creating a regulated market for online slots or table games. The law bars online games awarding cash prizes and extends to operators, suppliers, payment processors and media affiliates. Violations can bring fines of $10,000 to $100,000 for each violation.
The measure followed an enforcement campaign against the sector. In June 2025, the Attorney General’s Office and New York State Gaming Commission identified 26 platforms offering casino-style games and sports betting with virtual coins redeemable for cash or prizes. All 26 stopped selling sweepstakes coins in New York after receiving cease-and-desist letters, the Attorney General’s Office said.
New York law treats wagering cash-redeemable virtual coins on games of chance as gambling, regardless of how operators describe the way users obtain the coins. The attorney general said the platforms were not subject to state audits and oversight intended to ensure games were not rigged. In September, the state announced an $8 million settlement with VGW, operator of Chumba Casino, Global Poker and LuckyLand Slots.
The election also left iGaming legislation without clear executive backing. State Sen. Joseph Addabbo Jr. has introduced an online-casino measure every year since 2022, but none has received a floor vote. His latest proposal, S2614, would have allowed casinos, online sportsbook operators, tribes and video lottery facilities to apply for licenses; the 2026 legislative session ended in June without a vote.
Hochul excluded online casinos from her 2024 executive budget and has not committed to signing such legislation. Supporters have argued that a regulated market could generate tax revenue and provide consumer safeguards for people using unauthorized sites. Opposition has included concerns about gambling addiction, competition with physical casinos and potential job losses among casino workers.
Separately, Hochul’s victory retained the administration pursuing a July 31 lawsuit against KalshiEX LLC, which alleges the prediction-market operator ran an illegal, unlicensed gambling business and seeks to halt its operations, recover alleged illegal gains and obtain restitution for users.
New York lawmakers are scheduled to return in January for the 2027 legislative session.
