The only thing standing in the way of a sweepstakes casino ban in New Jersey is a swipe of the pen.
New Jersey Assembly Bill 5447 has passed both houses of the New Jersey Legislature. The bill, which prohibits the sweepstakes model of wagering and establishes new penalties for unlawful gambling operations and practices, was approved by the Senate with a 34-5 vote, following its passage in the Assembly.
The reason sweepstakes casinos have become so popular, and can operate so broadly, is that they use virtual currencies instead of real money, and participation does not require a purchase, which keeps them outside the definition of gambling under most state laws.
AB 5447 clears up any gray areas. It is now awaiting Governor Phil Murphy’s signature to become law.
New Jersey's Path to Anti-Sweepstakes Legislation
AB 5447 was introduced in March and moved through several committees, including the Assembly Appropriations Committee, where it received unanimous support (11-0 vote).
It aims to ban platforms in The Garden State that offer virtual currency for cash prizes and impose penalties on unlawful gambling activities.
The bill specifically prohibits "sweepstakes," defining them as promotions, contests, or games—both online and in person—where prizes are awarded indirectly. The bill's oversight and compliance will be managed by the Division of Consumer Affairs and Gaming Enforcement.
One of the main objectives of the bill is to ban dual-currency systems and prevent sweepstakes outcomes based on sporting events. This comes in response to the emergence of sweepstakes casinos, which have found ways around New Jersey's stringent gambling laws, attracting criticism for exploiting legal loopholes to mimic traditional online casinos.
Other provisions of A5447 include:
Prohibiting sweepstakes casinos and similar wagering models.
Establishing fines up to $100,000 for a first offense and $250,000 for subsequent offenses against operators.
Increasing penalties for maintaining illegal gambling resorts, including online operations.
After clearing all legislative hurdles, the bill reached the “Enrolled” status, meaning it passed both the Assembly and Senate and is now awaiting action by the governor.
Not Everyone Is on Board With the Vote
The Social and Promotional Games Association (SPGA) is asking Governor Murphy to say "no" to Assembly Bill 5447. They believe this bill, which aims to ban promotional sweepstakes gaming, was pushed through too quickly to benefit big casino companies.
“Governor Murphy has an opportunity to do what the Legislature would not—listen to facts, not fear,” said a spokesperson for the SPGA. “This bill doesn’t just mischaracterize an entire industry, it ignores data, undermines innovation, and puts New Jersey’s reputation as a forward-thinking leader in tech and entertainment at risk.”
The SPGA argues that this bill goes against a more reasonable plan introduced earlier this year by Assemblyman Clinton Calabrese. His plan focused on regulating and taxing these platforms, not banning them.
The SPGA is worried that casino lobbyists, who want to remove legal competition, are behind the bill. They believe that instead of protecting consumers, this move only protects the big casinos.
They are urging Governor Murphy to protect consumer choice and not to limit innovation by vetoing Assembly Bill 5447.
Growing Movement Against Sweepstakes Casinos
Should Governor Murphy sign the bill, New Jersey would join five other states in banning sweepstakes operations, including New York and Connecticut, which have already taken similar measures.
- Arizona: The Arizona Department of Gaming (ADG) issued cease-and-desist orders to several unregulated operators.
- Connecticut: A bill making sweepstakes casino operations a Class D felony.
- Louisiana: The governor vetoed recent legislation, but the state’s gaming board has issued numerous cease-and-desist orders.
- Maine:Warned residents about sweepstakes gaming last month.
- Nevada: By passing SB 256, The Silver State strengthened penalties against unlicensed gambling, including sweepstakes casinos.
- Montana: Enacted a law banning sweepstakes gambling. It's effective in October and will implement severe penalties for violations.
- New York: Passed a bill banning online sweepstakes casinos, pending the governor’s signature. The Attorney General has also taken action against operators.
- Pennsylvania: The Gaming Oversight Committee issued 18 cease-and-desist letters to sweepstakes casinos operating within the state.
Other states like Ohio,California and Mississippi are also considering legislation to curb sweepstakes operations.
As New Jersey awaits Governor Murphy's decision, while the debate around sweepstakes legislation continues, the focus remains on balancing consumer protection with fostering innovation within the gaming industry.
Play Sweepstakes Casino Games Online in Other States
But, even as some states move toward tighter controls, players in most of the country can still enjoy sweepstakes casino games online.
States that haven’t enacted specific bans or restrictions continue to offer these platforms as a form of entertainment for those seeking alternative gaming experiences. These states allow players to enjoy sweepstakes games without the fear of legal repercussions, giving people the freedom to participate responsibly.
The ongoing discussions and legislative actions in various states highlight the diverse approaches being taken across the country, with some regions choosing to embrace these games under existing regulations.
But no matter which route your state chooses, it's always important to practice responsible gambling habits.
