New Jersey’s anti-sweepstakes casino effort is gathering momentum, with Assembly Bill 5447 gaining a second sponsor, publicly viewable wording, and a counterpart bill in the Senate.
Having two bills generally increases the chance of success by ensuring support in both chambers early on. It also allows lawmakers to work on the legislation simultaneously in both houses, rather than waiting for it to pass one before starting in the other, thus speeding up the process too.
A5447 Gains a Co-sponsor
We recently reported on the introduction of A5447 by Democrat Assemblyman, Clinton Calabrese, following his earlier attempt to legalize and regulate sweepstakes casinos. A5447 marked a significant shift, as it seeks to ban the sweepstakes model entirely, reversing his previous stance. It now has a co-sponsor in the form of Democrat Assemblyman Sterley Stanley.
Officially introduced on Monday 17th March, the proposed legislation defines sweepstakes as:
“A promotional, advertising, or marketing event, contest, or game, whether played online or in-person, in which something of value, such as a prize or prize equivalent, is awarded, either directly or indirectly through means such as a dual-currency system of payment that allows a participant to exchange the currency for a prize or prize equivalent.”
The bill prohibits sweepstakes gaming, but also offers some exceptions, including when “there exists a method of entry to participate in the sweepstakes at no cost to the participant”. Sweepstakes casinos currently argue for their legality using points such as the fact that players can indeed enter for free, either through coins won via bonuses, or via an alternative method of entry (AMOE), such as sending in a postcard for free coins.
This creates a potential grey area that may require further clarification, but the spirit of the bill is certainly to ban sweepstakes casinos completely, and the wording of the bill could improve as it passes through the legislature.
It creates the possibility for penalties of up to $250,000 for every day that a prohibited service is offered, classing each 24-hour period as a separate offense. The responsibility of enforcement is handed to the state’s Division of Consumer Affairs and Division of Gaming Enforcement.
Counterpart Bill Filed
The counterpart bill, S4282, was filed by Democrat Senator John Burzichelli, and it will begin its way through the various stages of Senate debate and amendment in parallel to A5447.
New Jersey is one of many US states looking to act fast and create a hostile environment for sweepstakes casinos within its state lines. Similar bills are progressing in states like Nevada, New York, Florida, Maryland, and Mississippi.
Author: Joseph Allen
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