Sweepstakes casinos pull out of New York amid legislative crackdown

Multiple sweepstakes casinos have recently said they’re pulling out of the New York market, and at the same time, the industry’s trade group is trying a new strategy for how its members deal with the state.

According to posts on the Chumba Casino Reddit page, several sweepstakes operators have decided to leave New York, apparently due to ongoing talks with state officials. Several users received notices that stated: “Soon Chumba Casino will not be available in this region.

“A recent change to our Terms and Conditions means that players who reside in this region will soon no longer be able to access or play Chumba Casino.”

Comment
byu/Normal_Scholar_2450 from discussion
inChumbaCasino

This all comes as Senator Joseph Addabbo Jr.’s SB5935 bill, which is aimed at banning these sites, keeps making its way through the New York legislature. It follows a debated push at the national level to shut these kinds of platforms down.

Sen. Joseph P. Addabbo Jr. announced today he will push to either ban or incorporate sweepstakes in the state, similar to current laws in Michigan, Idaho, and Washington.

"I will push for iGaming as a safe, effective alternative to online casino enthusiasts," he said. pic.twitter.com/UF3hhgqb65

— RLinnehanSR (@RLinnehanSR) January 21, 2025

As a result, a handful of sweepstakes casinos including Hello Millions, SportsMillions, PlayFame, SpinBlitz, and most recently, Rolling Riches, have all announced they’re packing up and leaving New York next month. High 5 Casino has already taken action too, stopping new sign-ups and transactions as of March 27.

Last week on Reddit, users shared emails they’d received from several sweepstakes platforms, confirming the shutdowns. Each site outlined a phased exit plan, with full account closures expected by the end of April.

Cited by CasinoBeats, PlayFame told users: “This was a difficult decision for us to make, and we understand that this may be disappointing news.

“We want to take the opportunity to thank you for your support and your loyalty to our PlayFame community.”

Other sites reportedly shutting down include Hello Millions, High 5 Casino, SpinBlitz, and SportsMillions, adding to the growing list of platforms pulling out of New York.

It comes as the sweepstakes trade body, the Social and Promotional Games Association (SPGA), criticized Addabbo Jr.’s bill, which would ban online sweepstakes casino games in New York. The organization denounced the move as a “blatant overreach.”

NY Senate Threatens Businesses, Innovation, and Investment By Rushing SB5935 Through Committee pic.twitter.com/HIG13JL8Dc

— theSPGA (@theSPGA) March 19, 2025

In a statement issued on March 18, the SPGA said: “This legislation recklessly mischaracterizes sweepstakes gaming and threatens legitimate businesses with unnecessary and harmful regulation.

“New York lawmakers are dangerously conflating legal promotional sweepstakes with gambling, creating a broad and misguided precedent that could devastate industries far beyond social gaming.

“SPGA calls on New York legislators to stop this reckless march toward economic self-sabotage and reject this deeply flawed bill before it inflicts lasting damage.”

Featured image: www.nysenate.gov

The post Sweepstakes casinos pull out of New York amid legislative crackdown appeared first on ReadWrite.