New York Attorney General Letitia James recently announced the shutdown of sweeps casinos in the state, signaling the removal of 26 iGaming providers. In a press release, the AG stated that the office had identified the platforms and issued cease-and-desist orders in collaboration with the New York State Gaming Commission.
The AG stated that online sweepstakes gaming operations are ‘illegal, dangerous, and can seriously ruin people’s finances.’ Now, according to a report by sweepstakes casino site Sweepsy, a Reddit mod is encouraging players to join crypto casinos and offshore sites, which could lead to harm without proper protections in place.
The mod is a top commenter on Reddit and can impact what other players might do. If sweepstakes players follow his suggestions, it could lead to unregulated, offshore gaming. There would be no accountability and zero consumer protection, exactly what the ban was intended to prevent.
Legislative Efforts Continue
Along with the AG shutting down the sweepstakes operators, New York legislators are still considering SB 5935 and AB 6745. Senator Joseph Addabbo Jr. introduced the Senate bill prohibiting online sweepstakes games and revenue from illegal markets. This measure is still under consideration.
AB 6745 would prohibit online sweepstakes gaming and highlight both operators and suppliers. The bill has been reported to the Assembly and Ways Committee.
Even though the legislation has not officially become law, the AG’s move stops sweepstakes services in the state, displacing members of sites like Chumba, Fortune Coins, Global Poker, LuckyLand Slots, McLuck, and Yay Casino.
As shared by Matt Bain “If you get rid of sweeps, players will find somewhere else — and likely somewhere less safe — to play instead. Especially in states with no regulated iGaming. “
That information is already circulating.
Operators Were Prepared to Exit
Long before New York Attorney General Letitia James formally announced a crackdown on online sweepstakes-style gaming, several major operators had already taken steps to exit the state. As early as March, reports circulated that popular platforms such as Hello Millions, PlayFame, and High 5 Games were preparing to wind down operations in New York by late April.
These platforms notified players directly via email that New York would soon be added to their list of restricted states. For many users, the messages signaled the beginning of a broader shift away from the New York market.
Shortly after these early exits, VGW, one of the largest players in the social casino space, followed suit—announcing that Chumba Casino, LuckyLand Slots, and Global Poker would also be phasing out access for New York-based users.
While the attorney general’s office has since officially announced its enforcement stance, the early departures suggest sweepstake operators may have seen the writing on the wall. These early moves indicate the industry was already bracing for regulatory pressure before it became public knowledge.
Players Caught in the Middle as Legal Gray Zone Widens
Thousands of players have been left in limbo with the attorney general’s office cracking down on sweepstakes casinos and multiple platforms pulling out of New York. Many are now turning to unregulated offshore casinos and crypto-based gaming platforms, drawn in by looser restrictions and higher rewards, even though serious risks are involved.
Experts warn that this migration to the black market could grow without a legal, regulated alternative in place. These offshore sites don’t offer consumer protection, operate without oversight, and can put players at risk of identity theft, financial loss, or worse. Posts on platforms like Reddit show how quickly users turn to questionable options, encouraged by influencers with no accountability.
As lawmakers debate legislation like SB 5935 and AB 6745, one thing is clear: New York’s enforcement actions have created a vacuum. Until a safe and regulated online casino market is available in the state, the unintended consequence of this ban may be pushing players into even more dangerous territory.
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