Social gaming coalition says New York could lose $230 million annually from sweepstakes ban

The Social Gaming Leadership Alliance (SGLA) warned that a proposed ban on online social games with sweepstakes promotions would remove more than $230 million in annual economic contribution from New York, citing new analysis from research firm Eilers & Krejcik on behalf of the group.

The industry coalition said regulation of the sector could instead unlock more than $80 million in new annual tax revenue through operator registration fees, a tax on player purchases, and expanded market access.

The sweepstakes promotions industry contributed over $135 million in interchange fees to New York-based card issuers in 2024, according to the analysis. It also generated more than $15 million in payment processing and card network fees for companies, including Mastercard and American Express, $44 million in affiliation deals, and $38 million in household earnings from sector-related jobs.

Legislation S. 5935-A / A. 6745-A is currently under review by Governor Kathy Hochul. The SGLA is pushing for a veto, arguing that a regulatory framework would preserve economic benefits while establishing consumer protections.

“Governor Hochul faces a clear choice: Embrace smart regulation that protects consumers and generates new revenue or ban a thriving, responsible industry and eliminate hundreds of millions of dollars in economic benefits,” said Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance. “We urge the Governor to veto this bill and support a framework that ensures these games are safe, accessible, and beneficial to New Yorkers.”

The group said a recent national survey showed 84% of Americans support modernizing laws to regulate and tax online social games, and that voters want lawmakers to prioritize issues such as inflation, the high cost of living, health care, and immigration rather than banning free-to-play entertainment.

The SGLA had previously expressed disappointment in actions taken in California, where Assembly Bill 831 banned online social games with sweepstakes promotions. Nevada, Montana, New Jersey, and Louisiana have also taken enforcement measures against sweepstakes casinos.

Separately, New York lawmakers are weighing additional consumer protection legislation. A bill introduced by Assemblymember Alex Bores would prohibit licensed sportsbooks from banning or reducing wager sizes for players who win frequently unless linked to responsible gambling or sports integrity risks. The New York State Gaming Commission would likely enforce the measure if approved.