New York social casinos with no cash redemptions are legal. Sweepstakes casino sites with cash redemptions and dual currency systems are illegal.
The article below explores whether sweepstakes cash redemptions in NY are illegal, but social casinos remain operating. As we explain legality, we’ll also point out the specific rules and laws that apply for players.
Long story short, it will be difficult to find a sweepstakes casino in New York that is legal. The New York ban on sweepstakes casinos dates back to 2025. On June 6, 2024, New York Attorney General Letitia James sent cease-and-desist letters to 26 major sweepstakes operators.
In the letters, AG James said that wagering cash-redeemable virtual coins on what is legally considered games of chance is illegal. Operators like Chumba, High 5 Casino, and McLuck did not fight the distinction, but ended sweepstakes casino operations in the state.
Meanwhile, a Senate bill to ban sweepstakes casinos and sportsbooks was moving through the New York State legislature. State Senator Joseph Addabbo, a longtime supporter of the online gambling industry, introduced the bill.
On June 11, 2025, the NY Senate passed SB 5935 by a 57-2 margin. Four senators were excused from the vote. On June 17, 2025, the General Assembly passed the same bill by a 141- 0 vote. Nine members were absent or did not vote.
On December 1, 2025, the bill was delivered to New York Governor Kathy Hochul. She signed the bill into law on December 5, 2025. It went into effect on January 1, 2026.
Ultimately, players had over six months to redeem their Sweepstakes Cash from most sites. Most withdrew when the cease-and-desist orders were sent in June 2025. Players who were aware of the new law coming into effect may find it difficult to make any new sweepstakes cash redemptions in the state of New York this late in the year.
The bill changed the laws in several ways. First, it established Section 912 of the Racing, Pari-Mutuel Wagering, and Breeding Law, which bans sweepstakes sites.
Particularly, it bans dual-currency sweepstakes sportsbooks and casinos that offer “consideration” for the wager. The multi-currency aspect is key, and is why several operators have switched to a single-currency model in the intervening months.
The new law penalizes not only the online sweepstakes site owners and operators. It also allows officials to go after third-party operators, such as payment processors, geo-location service providers, game content suppliers, and third-party affiliates and influencers who advertise such sites.
S5935a also sets major civil punishments. It sets the monetary fines from $10,000 to $100,000 for every violation. It also threatens potential gaming license revocations, with the added suggestion that unlicensed operators might be blocked if they ever apply for a license in the future.
The preamble states its goal: “To prohibit certain persons from operating, conducting, or promoting certain online sweepstakes games or supporting the operation, conduct, or promotion of such games.”
“The bill also grants authority to the New York State Gaming Commission and the Attorney General to enforce penalties against violators.”
The law does not allow criminal prosecutions. New York lawmakers believed civil fines and other actions were enough. They were correct.
Meanwhile, many top operators chose to leave entirely. The aforementioned High 5 Casino and McLuck left the New York market altogether.
So did Crown Coins, Pulsz, WOW Vegas, and Stake.us. High 5 Casino surprised some with its decision, as it had a long history in the social casino scene.
The high fines appear to have been the deciding factor in leaving the Empire State.
A variety of NY social casinos still operate in the state. Longtime social-first casino sites like Gambino Slots were not affected. Gambino never used a cash prize redemption game mechanic.
Rush Street Interactive’s BetRivers also serves as a preferred social gaming hub for New York players. BetRivers/Casino4Fun offers live dealer games and premium slots, but is only for non-redeemable virtual credits. Play is for fun and entertainment only.
Some of the sweepstakes casinos became social casinos in New York. For instance, VGW sites like Chumba Casino, LuckyLand Slots, and Global Poker switched to a single-currency system and continue operating.
VGW recently announced LuckyLand Slots’ last day of operation would be September 14, 2026. LuckyLand Casino and Just Slots are successor sites, but neither will operate with a single-currency system in New York. NY players will not be able to access either site.
Sites have tried to work around the dual-currency ban. For instance, Vision NL Limited specifically launched a site to get around Senate Bill S5935A: Card Crush.
Instead of using the dual-currency system of Gold Coins and Sweepstakes Coins, Card Crush uses a single currency called Mystery Coins (MC). Once a 1x playthrough requirement is met, these become Eligible Mystery Coins that have a 1 MC to $1 ratio.
The key feature that gets around the gambling ban is the game mechanic. Instead of offering slots or live casino games, players speculate on Mystery Boxes, much like the loot boxes online video game operators offer.
These include coin picks in the form of collectible cards with real-world value. Using these collected character cards, players can engage in 1v1 skill battles versus other real-world players.
This allows them to climb leaderboards and earn Club Point rewards. For that reason, Card Crush is a single-currency skill contest instead of a gambling operator. This business model is untested, and neither AG Letitia James nor the New York State Gaming Commission has offered an opinion on it yet.
In other states, the sweepstakes casino site with the most monthly searches in August 2026, Crown Coins, now offers its own digital collectible card game purchase option.
Buying packs of Pokémon and sports trading cards on the secondary market, Crown Coins turned purchases into a single-currency game that might not be banned under New York sweepstakes casino laws.
Crown Coins has not tested the model in New York state, though.
