Stakester's Take

Despite the stringent landscape for online gaming in New York, there are still a handful of top sweepstakes casinos available to players in New York.

Here's my top choices listed:

New York's Sweepstakes Casino Laws Explained

Online casinos using the Sweepstakes model are still allowed to operate in New York as of 2025. This is because they use virtual currencies for direct gameplay and not legal tender. These include Gold Coins, Sweeps Coins, or any other branded names with implied but not direct value.

Since 2022, lawmakers have attempted to get some form of regulation approved in New York. The biggest success came that year when the state legalized online sports betting, but only exclusively. 

Thus, in 2025, Sweepstakes casinos will remain the only option for New Yorkers to enjoy legal casino-style games on the go. The state government still prohibits most games as a general rule, even at in-person establishments.

New York's Gambling Regulator

The New York State Gaming Commission regulates all gambling at all levels across the state.

Established in 2013, it is a unification of numerous state-run bodies that currently oversee casinos, lottery, horse racing, sports betting, and charitable gaming.

Known for its strict enforcement and overly cautious approach to online regulation. The body is responsible for regulating and the potential restriction of sweepstakes casinos. 

Responsible Gambling in New York

While the top New York sweepstake casino operators offer a strong variety of responsible gambling tools, they are not required to by law.

These measures can include:

• Offering players daily, weekly, or monthly spending limits.
• Voluntary self-exclusion - either through a casino's programme or from the New York State Gambling Commission directly.
• Parental controls and third-party software to prevent underage access.

The state of New York also offers access to problem gambling support in the form of resources, such as the National Council on Problem Gambling (NCPG) and the New York State HOPEline (1-877-8-HOPENY).

These are readily available on sweepstakes websites in New York; just navigate to any page's footer.

Tax Requirements at New York Sweepstakes Casinos

In New York, all sweepstakes redemptions are taxable at both the federal and state levels:

• Federal tax: 24% withholding on winnings over $5,000; all winnings must be reported as income.

• NY state tax: Graduated rates from 4% to 10.9% depending on total income.

Additional taxation may also be applied depending on locality. Most notably, NYC and Yonkers residents will be affected.

In the case of large wins, operators may withhold state taxes themselves. However, players are still responsible for accurate reporting and payment of taxes on all prizes and redemptions. They must report this on IRS Form W-2G and NY Form IT-201.

Latest New York Sweepstakes Casino Regulatory Changes

In the coming year, it is expected that several changes will be made to the way sweepstakes casinos in particular, are regulated:

• Two bills (SB 5935 and A6745) are advancing to ban online sweepstakes casinos using dual-currency models.

• Fines for violations range from $10,000 to $100,000 per incident.

• The New York State Gaming Commission will define what constitutes a dual-currency sweepstakes system.

• Several major operators have already exited the state in anticipation of the ban.

• The legislative session ends June 12, 2025; further exits and legal changes could occur before then.