Letitia James, New York Attorney took action against 26 online sweepstakes casino operators in early June. Working with the New York State Gaming Commission, her office sent cease-and-desist letters to these companies.
These platforms offer games such as slots, table games, and sports betting. Players use virtual coins, which they can exchange for cash or prizes. New York law bans online gambling where people risk something valuable, such as these coins.
The state believes these sites operate without proper rules, which could lead to unfair games, fraud, or even money laundering. Each of the operators agreed to stop selling sweepstakes coins in New York. The Attorney General also told people to stay away from these sites to avoid risks.
The Social Gaming Leadership Alliance (SGLA), a group representing online social gaming and sweepstakes companies, responded on June 10, 2025. Since its founding, the SGLA has pushed for fair policies across the U.S. and worked with lawmakers to clarify that sweepstakes differ from gambling due to their free entry options.
They disagree with the state’s view that sweepstakes are illegal gambling and want to work together to address those concerns.
According to the SGLA, their platforms comply with U.S. laws by offering free ways to play. These include daily rewards or mail-in entries, known as AMOE (Alternative Methods of Entry). Developers created AMOEs to give players a lower barrier to entry compared to traditional online casinos.
The SGLA says players can’t turn virtual coins bought in games into cash or prizes, despite sweeps casinos offering pay-to-play options. Rewards come from separate sweepstakes promotions instead.
The SGLA believes they can work with New York officials to create fair rules that protect players without overly restricting users. SGLA Executive Director Jeff Duncan said they disagree with the state’s actions but are willing to collaborate.
