New York State has shown a clear legal red card to online lottery-style casinos and sports betting. With the enactment of Bill S5935A, the state explicitly prohibits the operation, promotion, or support of any online lottery games based on a dual currency system, immediately disrupting several platform businesses serving local residents. The introduction of this bill is the culmination of months of legislative activity and preliminary enforcement actions.
Core of the Bill: Precisely Targeting the "Dual Currency" Model
This new law's core goal is very clear: to block online lottery models built on a "dual currency" system and cashable cash rewards. The bill stipulates that when an individual or associated entity knowingly profits from the prohibited lottery games, the New York State Gaming Commission and the Attorney General have the authority to intervene. Think about it, a single violation could face a fine of up to $100,000! For institutions holding or applying for a gaming license, violations could also lead to additional severe consequences.
The bill provides a clear definition of "prohibited online lottery games": any internet promotion or competition activity accessed through smartphones, computers, etc., using two types of in-game currency, and possibly offering cash or cash-equivalent prizes, covering content in the form of simulated casinos or sports betting. However, traditional lottery activities that do not offer cash redemption rewards are not affected by this ban.
Rapid Market Reaction, Multiple States Have Joined the Ban
As soon as Governor Kathy Hochul signed the bill, the market reacted immediately. Several operators cut off services to New York users within hours. Platforms like Novig and ProphetX notified users via email that their services were no longer available in the state, and discussions about the sudden ban appeared on social media. A user publicly complained: "Thanks for nothing, Governor Hochul. Was it really necessary to ban Novig and ProphetX in New York? Waking up to this news is really upsetting."
New York's move is not an isolated case. It has joined the same front with California, New Jersey, Connecticut, and other states that have issued similar bans. Additionally, 13 other states across the US have issued bans. In California, the related ban will take effect on January 1, 2026, with penalties including fines of up to $25,000 or even imprisonment. Industry practitioners can continue to follow the regulatory dynamics and analysis on the PASA official website.
Policy Background and Far-reaching Impact: Paving the Way for Regulation?
In fact, before the passage of the S5935A bill, New York State had already taken preliminary enforcement actions. In June this year, Attorney General Letitia James announced that 26 operators providing lottery-style casino games had ceased activities after receiving the prohibition order. The new law grants the state government more direct prosecution powers.
The main proponent of the bill, State Senator Joseph Addabbo, has long advocated for a broader discussion on online gambling. He has stated that most lottery-style casino websites lack the "guardrails and safety measures" meticulously set up in mobile sports betting or online gambling. Observers believe that this move may be intended to clearly distinguish unregulated lottery-style casinos from online casino games that may be authorized in the future, clearing obstacles for the latter's possible legalization path and defining clearer regulatory boundaries.
————
This article is from "PASA-Global iGaming Leaders" gambling news channel:https://t.me/pasa_news
Original deep gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
