New Jersey lawmakers are still betting on a bill to ban sweepstakes casino games in the Garden State.
The Tourism, Gaming, and the Arts Committee in the New Jersey Assembly has advanced a bill (A5447) that would ban online sweepstakes casinos in the state. Sponsored by Representative Clinton Calabrese, the legislation targets platforms that use virtual currency for cash prizes. If passed, it will introduce new penalties for illegal gambling and authorize the Division of Consumer Affairs and the Division of Gaming Enforcement to enforce these regulations.
Interestingly, this move represents a shift for Rep. Calabrese. In January, he introduced a bill that laid out a framework to put sweepstakes casinos on par with regulated online casinos and sports betting operators. The recent bill, however, takes a starkly different approach, signaling a decisive move towards tighter control.
The news also comes on the heels of a decision by Florida lawmakers to table their efforts to restrict sweepstakes casinos.
What Are Social and Sweepstakes Casinos?
Sweepstakes casinos have captured the public's attention because they offer players a unique way to enjoy casino-style games without requiring cash deposits.
New users receive free gold or sweepstakes coins upon signing up, with the option to buy more using a credit or debit card. This clever system circumvents traditional cash betting laws, keeping these platforms thriving in New Jersey.
Social casinos operate similarly, explaining their widespread popularity. However, New Jersey isn’t alone in scrutinizing these platforms. States like Mississippi, Connecticut, Maryland, and New York are deliberating similar legislative measures. With New Jersey moving towards tighter regulations, it could set a precedent, encouraging other states to follow suit.
SPGA Pushes Back Against Sweepstakes Casino Games Ban
The Social and Promotional Games Association (SPGA) has expressed strong opposition to Assembly Bill 5447. The SPGA argues that this bill goes against New Jersey's forward-thinking gaming policies and represents a return to outdated prohibition strategies.
The group would like to see lawmakers reject AB 5447 and consider the earlier regulatory approach of regulating, licensing, and taxing these platforms to align them with other gaming entities, which they say aims to protect consumers and encourage innovation in New Jersey's evolving gaming market.
States like Pennsylvania and New York are discussing bills like the one in New Jersey. But similar bills were recently rejected in Arkansas, Maryland, and Mississippi.
The Future of Sweepstakes Casinos in New Jersey
The ultimate success of these regulations will hinge on the resolution of legal disputes and the ability of authorities to enforce the new laws effectively. Only time will tell how these changes will shape the landscape of online sweepstakes casinos across the nation. Until then, all eyes remain on New Jersey as the state navigates this complex yet pivotal terrain.
