In a significant development for the online gaming industry, legislative efforts to regulate sweepstakes casinos have taken opposite paths in Florida and New York. While Florida’s proposed bills to ban online sweepstakes casinos have failed to advance, New York’s legislation has been amended and is progressing through the legislative process.
Sweepstakes casino legislation in the U.S. varies widely from state to state. According to Sweepsy.com, 11 states made an effort in 2025 to ban sweeps, but none have succeeded so far.
“One state passed a bill, but it awaits a signature. Bills in four states failed. The remaining six are a mixed bag — one’s bill has been stuck in the committee stage since February, while a couple of others are on the verge of passing.”
States like New York are moving toward more structured oversight by amending laws to address dual-currency models and define the industry. Meanwhile, many other states either allow sweepstakes casinos to operate in a legal gray area or haven’t addressed them.
This tactic results in an inconsistent legal environment requiring players and operators to navigate complex and evolving rules.
Florida’s Legislative Efforts Stall
Florida lawmakers introduced HB 1467 and SB 1404 with the intent to criminalize online sweepstakes casinos by redefining “internet gambling.” The new definition would include games that award money or other valuables based on chance. These bills would set strict penalties, including prison time and fines for violations.
The Social and Promotional Games Association (SPGA) strongly opposed the measures, arguing that the bills fused legal promotional sweepstakes with illegal gambling, potentially criminalizing legitimate business activities and depriving the state of significant revenue.
The SPGA advised that the broad-reaching bills would have affected other businesses outside the sweepstakes industry. Such companies as McDonald’s and Marriott could be affected as they offer sweepstakes to their customers.
Despite the push, both bills failed to gain the necessary support to move forward. They did not advance through the legislative process.
It is doubtful that the sweepstakes legal battle in Florida is over. The Seminole Tribe has exclusive rights to operate casino gaming in the state and likely sees the iGaming option as a threat to their overall operations.
It would not be surprising to see new variations of the recently failed bills introduced in the next legislative session.
New York’s Amended Legislation Advances
In contrast, New York’s legislative efforts have gained momentum. Senator Joseph Addabbo introduced Senate Bill 5935 to prohibit online sweepstakes games that utilize a dual-currency system that allows players to exchange virtual currency for real prizes.
The amendment was added in the bill’s third reading, revealing that the New York State Gaming Commission will decide which sites qualify for a dual-currency system. The Senate bill now matches more closely with Assembly Member Carrie Woerner’s A6745, which is starting to move through the committee stage of the assembly.
This would create a more adaptive regulatory approach. The legislation passed through the Committee and is advancing toward a full Senate vote.
The SPGA has also voiced concerns about this measure, stating that it could harm legitimate businesses and infringe on the personal freedoms of consumers. The SPGA feels the latest amendment does not change anything, and the bill wouldn’t have been amended if it hadn’t needed to be changed.
The advocacy group said that New York legislators publicly admitted the bill is flawed and called SB5935 ‘bad legislation’ and said lawmakers have taken a mess and made it into a catastrophe.
Implications for the Online Gaming Industry
The contrasting outcomes in Florida and New York highlight the complex nature of online sweepstakes casino regulation. Florida’s failure to pass restrictive legislation suggests lawmakers may not be ready to change existing gaming frameworks. New York’s approach shows a desire to close regulation loopholes and protect consumers.
The actions of these states may influence future regulatory efforts across the country as the online gaming landscape continues to evolve. The fight is likely not over yet but will continue nationwide as lawmakers decide how to handle the lucrative sweepstakes gaming industry.
The rules around sweepstakes casinos in the U.S. are still changing and differ from state to state. Some states allow them with little oversight, while others are starting to review or change their laws to support or limit them. Because of this, both players and operators must keep up with local regulations, as the legal landscape is still far from clear.
