New Jersey Assemblyman Clinton Calabrese has reversed course on sweepstakes casinos, submitting a bill that could see them completely banned in the state.
Earlier this year, we reported that Democrat politician Calabrese had introduced a bill aiming to legalize and regulate sweepstakes sites in the Garden State. New Jersey already has legal online casinos and sports betting, making it one of seven such states in the US.
Calabrese’s A5196 bill looked like it could potentially bring the sweepstakes vertical into a similar regulatory framework; it would have certainly legitimized the sweeps industry somewhat. However, after it seemingly made no progress, the new A5447 bill filed this week looks to ban the sweepstakes format in a shocking reversal.
There is little information available on the exact content of the bill for now, but its online summary reads:
‘Prohibits sweepstakes model of wagering; establishes new penalties for unlawful gambling operations and practices; directs Division of Consumer Affairs and Division of Gaming Enforcement to enforce penalties.’
Bill Mirrors Other Anti-Sweepstakes Efforts
The news isn’t entirely surprising when we consider other such bills making their way through state legislatures in New York, Florida, and Maryland. It leaves Hawaii as the only other US state currently considering legitimizing sweepstakes casinos via state law. As we reported earlier this year, the Aloha State is looking at creating the first-ever state-owned sweepstakes casino to raise revenue, but this is unlikely to open the regulatory door for existing sweeps sites.
The Social & Promotional Games Association (SPGA), a trade association of leading companies from the sweepstakes industry, has hit back against the new bill from Calabrese. It expressed disappointment, saying:
‘This shortsighted legislation abandons the state’s progressive stance on gaming, directly contradicting the regulatory framework championed by Assemblyman Clinton Calabrese earlier this year—one that would ensure oversight, licensing, and taxation, bringing sweepstakes in line with other regulated gaming entities.’
To complicate matters, there’s also Bill S4109 making its way through the New Jersey state senate. This was introduced by Senator Joseph Cryan earlier this year and reflects a similar sentiment to Calabrese’s first bill. Namely, it seeks to designate sweepstakes sites as ‘internet gaming’, requiring ‘licensure, oversight, and taxation thereof within internet gaming framework’.
Sweepstakes Casinos Under the Microscope
Despite existing in some form since 2012, sweepstakes casinos and their dual-currency format are being held under the microscope like never before in the US. Multiple lawsuits have been brought against sweepstakes gaming companies, but none have established a firm legal precedent, often settling or simply being dismissed.
Various state lawmakers are beginning to pick up the issue and debate bills around the country, but the path to passage for any new law involves multiple committee reviews and final approval from the governor. In the case of New Jersey, it’s worth remembering that if A5447 passes through the Assembly, a matching Senate bill would also need to advance similarly.
Keep an eye on SweepsKings for further updates.
Author: Alex Windsor
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