SGLA Warns New York’s Social Plus Games Ban Could Cost State Hundreds of Millions

Last December 8th, New York Governor Kathy Hochul finally signed Senate Bill 5935 into law. Regulators and supporters hailed the law as “a win” for consumer protection. Its proponent, Senator Joseph P. Addabbo, Jr., Chair of the Senate Committee on Racing, Gaming and Wagering, also cited the economic costs, saying that these unregulated sites “diverts millions in potential revenue” for the state.

However, not everyone is impressed with the law.

The Social Gaming Leadership Alliance (SGLA), the industry’s top lobby firm, has expressed its disappointment over this development. In a statement released on December 8th, the advocacy group called it “a rushed legislation, which ignores public support and its economic consequences.

Gov. Hochul Chose a “Short-Sighted Path”

The SGLA, through its Executive Director, Jeff  Duncan, expressed their deep disappointment over the governor’s decision to pass S. 5935-A / A. 6745-A. This law bans “Social Plus games’” or sweepstakes casino games, which have been enjoyed by New Yorkers for years. The ban, the group explains, cuts off access to safe and fun digital entertainment and deprives the state of a source of income.

It’s a “short-sighted path”, says Jeff Duncan, depriving the state of the opportunity to promote consumer protection while spurring economic activities. In the same press release, Duncan shared that “players, operators, and voters all made their position clear: they didn’t want a ban on this popular, safe form of entertainment.

He added that Governor Hochul’s decision slams the door on innovation, choice, and millions worth of economic activity.

A Missed Economic Opportunity?

SGLA’s arguments stemmed from the research findings filed by consulting firm Eilers & Krejcik. The think-tank noted that sweepstakes casino games added over $230 million to the state’s economy in 2024 alone. And under a new regulatory framework, this popular industry could potentially deliver $80 million in annual state revenue.

However, the new law bans these platforms and games, depriving New Yorkers of meaningful alternatives. For SGLA, this move doesn’t just hurt players and consumers- it also impacts the state’s economy and stifles innovation.

For SGLA, banning sweepstakes casinos isn’t the answer. Public opinion, they say, calls for regulation, instead of a ban. A nationwide poll shows that 84% of Americans want a law to regulate and tax these sweepstakes casino games.

The same poll also reports that voters want their lawmakers to work on more urgent economic issues, like inflation and healthcare, instead of banning these games.

REFERENCES

• SGLA