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As one state legislature looks to reinforce regulatory actions against sweepstakes gaming operations, another has seen the governor veto a legislative ban, calling it unnecessary.
Senate Bill 5935 cleared the New York Senate by a vote of 57-2 on June 11 and could be considered on the floor of the State Assembly in the waning days of the legislative session this week.
The Assembly already has advanced its version of the bill out of committees and moved on Friday to substitute that bill for the Senate measure, meaning just one vote on the Assembly floor will be necessary in order for it to be passed.
The bill would specifically prohibit any online sweepstakes game that simulates casino-style gaming and “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents” or the chance to win such a prize, with the New York State Gaming Commission empowered to determine what constitutes a dual-currency system.
The Senate's passage of the legislation came just days after New York Attorney General Letitia James announced that 26 sweepstakes operators had already ceased sales of sweepstakes currency in New York, after her office sent cease-and-desist letters informing the companies that the operations were already illegal and a form of prohibited gambling.
'Overly Broad' Louisiana Bill Vetoed
Both chambers of the Louisiana state legislature approved a similar measure, Senate Bill 181, in early June.
But Governor Jeff Landry vetoed the measure on Thursday, stating that the bill “criminalizes certain secondary gambling activities on the internet that are already prohibited in Louisiana”.
Landry pointed to a cease-and-desist order sent by the Louisiana Gaming Control Board to offshore gaming operator Bovada that the board was already active in targeting illegal gambling operations and said that the board, along with other Louisiana law enforcement agencies, would continue to take similar action regarding “illegal online sweepstakes companies”.
“As such, this bill is a solution in search of a problem that is already being solved by our current system, and some of the language in this bill is overly broad and could be interpreted in an adverse manner which may harm or impede our current enforcement actions taken against these bad actors,” Landry wrote.
Critics of the Louisiana bill, including online sweepstakes trade group the Social and Promotional Games Association, had argued that the measure would also impact more traditional sweepstakes games such as the famed McDonald's Monopoly game as well as hotel loyalty programs.
“Governor Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition,” the SPGA said in a statement. “This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”
Two other state legislatures, Montana and Connecticut, have enacted legislation so far in 2025 intending to prohibit sweepstakes casino gaming in the state.
Montana Governor Greg Gianforte signed Senate Bill 555 into law in May, while Connecticut Governor Ned Lamont signed Senate Bill 1235 into law on June 11.
