Sweepstakes ban would cost New York $230M annually, says SGLA
The Social Gaming Leadership Alliance (SGLA) has stated that a ban on online social games and sweepstakes in New York would amount to a loss of $230 million annually to the state’s economy.
The group has raised concerns and presented economic research opposing the proposed legislation to curtail this type of entertainment, which would, says the SGLA, do more damage than good to the state’s financials.
SGLA opposes ban on social gaming and sweepstakes in NYWe reported on the SGLA opposed a similar ban through a bill (AB 831) in the state of California that was successful in bringing this form of entertainment gaming to an end, much to the group’s frustration.
The collective was critical of Governor Newsom’s decision to back the bill, saying that his decision was “flawed” and “rushed.” The group had lobbied for the people of the Golden State to oppose the bill, but has faced constant battles with the California Tribes and other vocal opponents.
If Governor Newsom signs AB 831 into law, online social games with sweepstakes promotions will be banned in the state of California, taking along $1 billion in contributions to the state.
Californians must act TODAY. Tell Governor Newsom to VETO AB 831: https://t.co/EIxBJON0hH pic.twitter.com/C15gPFpOrz
— Social Gaming Leadership Alliance (SGLA) (@SGLeadership) October 10, 2025
Jeff Duncan, Executive Director of SGLA, said that he hoped Governor Newsom would “see past the anti-competitive efforts of the powerful, well-funded tribes behind this bill and veto AB 831, but he chose the easy, short-sighted path and turned his back on choice, innovation, and economic gains.”
History is repeating itself in the Big Apple, and the SGLA has moved on to protect the social gaming and sweepstakes scene in the state.
Governor Hochul faces a sweepstakes choiceGovernor Kathy Hochul is overseeing a possible veto of the legislation (S. 5935-A / A. 6745-A). The SGLA and Duncan are making their case to the state figurehead to support this type of gaming in the state.
The SGLA has also said that, as a result of not progressing the legislation, a further $80 million would be “unlocked” in additional taxable revenue.
Duncan said of the NY legislation, “Governor Hochul faces a clear choice: Embrace smart regulation that protects consumers and generates new revenue or ban a thriving, responsible industry and eliminate hundreds of millions of dollars in economic benefits.”
The group has gone further to prove the financial boon that social gaming and sweepstakes provide to the state, with research conducted by analytics company Eilers & Krejcik.
Providing statistics showing that in 2024, sweepstakes and social games contributed, “$230 million in annual revenue to the state, $135 million in interchange fees to New York-based card issuing companies and $15 million in payment processing and card network fees to NY-based companies like Mastercard and American Express.”
The statistics also showed employment figures of sweepstakes and social gaming resulted in $38 million-plus in household earnings through New York employers.
Duncan concluded, saying, “We urge the Governor to veto this bill and support a framework that ensures these games are safe, accessible and beneficial to New Yorkers.”
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