New Jersey, Next in Line to Ban Sweepstakes Casinos?

Sweepstakes-style casino sites could soon be blocked in New Jersey if Governor Phil Murphy signs a bill lawmakers just sent to his desk. The measure would make sweepstakes offerings unavailable when players have to pay an entry fee or buy virtual currency to take part.

The New Jersey Senate passed Assembly Bill A5447 34–5 earlier this week. It had already cleared the General Assembly in June by a 69–10 vote, putting the legislation one step from becoming law.

A5447 is aimed at platforms that use dual-currency systems, a model commonly used by sweepstakes casinos across the US. In the bill, a “sweepstakes” is defined as a promotional or marketing activity that lets participants win prizes or prize equivalents using those systems.

Enforcement would sit with the state’s Division of Consumer Affairs, which could investigate and issue penalties. Fines could range from $100,000 for a first offense to $250,000 for repeat violations, and each day an operator stays active would count as a separate offense.

The proposal has sparked a public fight between traditional gaming interests and the sweepstakes industry. The Social and Promotional Games Association, which represents several major sweepstakes operators, has urged Murphy to reject the bill, arguing it sweeps legitimate promotional games in with illegal gambling operations. Supporters say tighter rules are needed to protect consumers and keep oversight strong in one of the largest gambling markets in the US.

New Jersey wouldn’t be alone: Connecticut, Louisiana, Montana, Nevada, and New York have advanced similar legislation this year, while California and other states are weighing restrictions of their own.