Online sweepstake casinos have been banned in New York under a bill signed into law by Governor Kathy Hochul on Friday.
The ban applies to all online sweepstake casinos that operate a dual-currency system allowing players to exchange game currency for any cash prize, cash award or cash equivalents.
The ban extends to sites offering the opportunity to win any cash prize, cash award or cash equivalents.
The bill also makes it unlawful for any technology supplier, game provider, payment processor, platform provider, and media affiliate to support or promote online sweepstake games in the State of New York.
Violators of the new law will be subject to fines ranging from $10,000 to $100,000 for each violation. They will also be subject to the loss of a gaming license or become ineligible for a gaming license.
The widening crackdown on sweepstakes will come as a blow to a number of gaming suppliers who are active in the space, as well as online gaming affiliates such as Next.io that focus on promoting sweepstake casinos in the United States.
Senate Bill S5935 was signed into law on December 5 and came into force with immediate effect.