N.Y. Laws » CHAPTER General Obligations / ARTICLE Creation, Definition and Enforcement of Contractual Obligations / TITLE Contracts Relating to Wagering; Forfeiture and Recovery of Certain Property
New York Consolidated Laws

N.Y. General Obligations Law § 5-401 (2026)

Illegal wagers, bets and stakes

✓ current as of May 2026
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§ 5-401. Illegal wagers, bets and stakes. All wagers, bets or stakes,
made to depend upon any race, or upon any gaming by lot or chance, or
upon any lot, chance, casualty, or unknown or contingent event whatever,
shall be unlawful.
Notes of Decisions
Cited in 7 cases, 1989–2002 · leading case: New England Mut. Life Ins. v. Caruso, 535 N.E.2d 270 (N.Y. 1989).
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New England Mut. Life Ins. v. Caruso, 535 N.E.2d 270 (N.Y. 1989). “When a third party insures another’s life, however, the contract does not have the same manifest utility and assumes more speculative characteristics which may subject it to the same general condemnation as wagers (see generally, NY Const, art I, § 9 [1]; General Obligations Law…”
Gen. Elec. Co. v. Metals Resources Grp. Ltd., 293 A.D.2d 417 (N.Y. App. Div. 1st Dep't 2002). “2), General Business Law § 351 and General Obligations Law § 5-401 (see, Procter & Gamble Co.”
Ramesar v. State, 224 A.D.2d 757 (N.Y. App. Div. 3d Dep't 1996). “Gambling in this State in general is prohibited (General Obligations Law § 5-401). The Lottery is authorized because it is operated with the specific purpose of raising funds for education (see, NY Const, art I, § 9; Tax Law § 1600 et seq.”
Alsaedi v. Alsaedi, 177 Misc. 2d 440 (N.Y. City Civ. Ct. 1998). “This court will not permit plaintiff to unilaterally execute an end run around the comprehensive regulatory scheme established by the Legislature.”
Youshah v. Staudinger, 159 Misc. 2d 350 (N.Y. Sup. Ct. 1993). “(General Obligations Law §§ 5-401, 5-411.) This court will not aid a party who came in with unclean hands by creating an illegal enterprise and then suing to recover money expended in fostering this illegal enterprise.”
Harris v. Econ. Opportunity Comm'n of Nassau Cnty. Inc., 142 Misc. 2d 980 (N.Y. Sup. Ct. 1989). “Contracts and agreements on account of raffles are utterly void (General Obligations Law § 5-417) and absent authorization therefor, gambling contracts are illegal and the courts of this State will not enforce gambling contracts (General Obligations Law § 5-401; Molina v Games…”
Mashantucket Pequot Gaming Enter. v. Renzulli, 188 Misc. 2d 710 (N.Y. Sup. Ct. 2001). · cites it 2× “Gambling in the State of New York is unlawful (see, General Obligations Law § 5-401). Therefore, such a debt under New York law would be unenforceable.”
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