Sweepstakes casinos in NY are under fire from the state’s top law enforcement office.
New York Attorney General Letitia James announced in June 2025 that her office “stopped” more than two dozen online sweepstakes casinos from taking bets from New Yorkers.
Operators of 26 sweepstakes casinos and sportsbooks are “ending the sale of sweepstakes coins in New York,” according to James.
The list includes well-known brands such as Chumba, Fliff, Fortune Coins, Global Poker, High 5 Casino, Sportzino, Luckyland, and Zula Casino. Still, the New York list omitted allegedly predatory sportsbooks like Thrillzz.
Many of the platforms, also marketed as so-called “social” casinos, are operated from overseas. Fliff, for example, is headquartered in Philadelphia, according to its LinkedIn page.
Earlier this year, James sent cease-and-desist letters to the operators of the platforms.
Growing Backlash to Sweepstakes Casinos
There are many more sweepstakes casinos in existence than the 26 named by James. According to Covers.com, at least 147 sweepstakes casinos are operating in the U.S.
It’s unclear how many NY-facing sweepstakes casinos are in operation.
According to a late 2024 report from The Washington Post, sweepstakes gambling platforms generated $6 billion in player purchases from Americans last year. The Post cited data from Eilers & Krejcik Gaming, a research firm specializing in gambling.
New York’s ban could deal a major blow to the sweepstakes casino industry. James’ move to ban the platforms comes as New York policymakers consider legislation to put a prohibition into law.
In May 2025, Montana became the first state in the country to pass legislation prohibiting sweepstakes casino gambling. Other states, such as New Jersey, Louisiana, Nevada, and Connecticut, are considering similar moves.
According to gambling attorney Daniel Wallach, over 100 cease-and-desist orders had been issued to sweepstakes casinos from all states combined (June 2025).
Related: TV star Ryan Seacrest sued over promoting Chumba Casino
Legal Rationale for NY Sweepstakes Casino Ban
The Office of the Attorney General (OAG), alongside the New York State Gaming Commission, identified 26 online platforms that offer slots, table games, or sports betting.
The platforms use virtual coins exchangeable for cash and prizes, such as Amazon gift cards.
Players typically buy virtual sweepstakes coins as part of a package with other virtual currency. Under New York law, betting cash-redeemable virtual coins on games of chance is gambling.
New York is friendly to the gambling industry but not to sweepstakes casinos.
New York law prohibits online casino gambling. Online sports betting was permitted in 2022, but a company must be licensed and pay taxes to offer online sports betting.
The state is incentivized to protect the businesses of its sanctioned gambling sites.
According to Legal Sports Report, New York has collected about $3 billion in tax revenue from sports betting since 2022.
NY Officials Condemn Sweepstakes Casinos
According to New York officials, sweepstakes casinos are especially predatory.
“Online sweepstakes casinos are not subject to audits and other regulatory oversight by the state to ensure that games are not rigged, putting New Yorkers at risk,” OAG said.
“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” James added.
New York State Gaming Commission Chairman Brian O’Dwyer called the platforms “unscrupulous, unsecure, and unlawful.”
Senator Joseph Addabbo, Jr., who spearheaded efforts to sanction online sports betting from companies such as DraftKings and FanDuel, also condemned the sweepstakes platforms.
“These so-called sweepstakes casinos not only put individuals at risk of fraud and financial exploitation, but they also create dangerous pathways for gambling addiction, especially among minors,” Addabbo said.
Some NY sweepstakes casinos recklessly direct users to the incorrect addiction support group.
New York’s legal online sports betting age is 21. However, daily fantasy sports gambling platforms, another form of mobile betting permitted in New York, allow users as young as 18.
However, underage gambling has been reported on New York’s regulated betting platforms as well.
Addiction Concerns Growing in NY
Not everyone is in favor of the current gambling landscape in New York, whether it is legal or not.
There have been numerous legislative proposals in 2025 that aim to implement stronger consumer protections in the state-sanctioned online betting industry.
For example, a bill introduced in June 2025 proposes banning the use of e-wallets to fund online sports betting accounts in New York.
The bill’s sponsor told Gambling Harm that legalizing online sports betting was “regrettable.”
Other legislation on the table in Albany calls for advertising restrictions, a ban on using credit cards for sports betting, deposit limits, and more to curb the rise of problem gambling.
Also under consideration is legislation to ban betting app push notifications and require NY insurers to cover problem gambling.
Whether it’s a regulated or unregulated online gambling platform, many New Yorkers are suffering from gambling-related harm.
In an effort to protect people with addiction from exploitation by treatment providers, a New York lawmaker introduced legislation to ban AI in gambling-related therapy.
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