NY Sweeps Ban Criminalizes Venture Investment in the Empire State, Demands Hochul Veto

WASHINGTON D.C. (JUNE 17, 2025) — The Social and Promotional Games Association (SPGA) strongly urges Governor Kathy Hochul to veto SB5935, a shortsighted bill that threatens to kill investment, stifle innovation, and undermine New York’s position as a national leader for tech and digital entertainment.

“This bill doesn’t just target sweepstakes, it sends a chilling message to anyone looking to invest in the next generation of gaming innovation,” said a spokesperson for the SPGA. 

“Nearly every form of online gaming we know today, including companies like FanDuel, a New York-based success story, began as pre-regulated concepts. This legislation criminalizes that innovation cycle.”

SB5935 singles out “individual investors and investment firms” for potential criminal penalties if they invest in any form of online gaming that allows a player to exchange any type of currency for a “cash prize, cash award, or cash equivalents.”   

Troublingly, the bill leaves the definition of what constitutes an offending game entirely at the discretion of the State Gaming Commission, an unelected body.

As one New York-based early-stage investor put it: “If this is how the state treats emerging models, it’s hard to imagine backing a founder who wants to innovate here.”

Louisiana Governor Jeff Landry recently vetoed similar legislation, calling it “a solution in search of a problem.” We strongly urge Governor Hochul to veto the legislation and protect the very spirit of innovation that has made New York a leader in tech, gaming, and entrepreneurship.