New Jersey Introduces Bill to Legalize Online Sweepstakes Casinos
News

New Jersey Introduces Bill to Legalize Online Sweepstakes Casinos

On January 16, 2025, New Jersey Assemblyman Clinton Calabrese officially introduced Bill A5196 for legalizing and regulating sweepstakes casinos, designating them as internet gaming.

The nine-page document highlights the required licensure, oversight, and taxation within the internet gaming framework.

Branded a potential game-changer for the sweepstakes industry, the document outlines the legal requirements for operating in New Jersey, including bi-annual submission to independent third-party audits at the cost of sweepstakes casinos.

In the past, online sweepstakes casinos were not necessarily required to operate under a license, meaning the new bill would bring them closer to traditional online casinos and sportsbooks in NJ.

This means the sites would now be regulated by the New Jersey Division of Gaming Enforcement and would have to partner with an existing licensed casino. Other standard requirements would include age verification (a 21-year-old minimum) and background checks.

Last but not least, the standard Jersey tax rate of 13% for sports betting and 15% for casino gaming would also apply.

Section 4 of the document defines the term “online sweepstakes” as an online platform that hosts authorized gambling games that do not require real-money participation but allow tokens that can be redeemed for real cash prizes.

This essentially gives the green light to the classic sweepstakes casino model of most platforms, which are referred to as Gold Coins and Sweep Coins.

The Social and Promotional Games Association (SPGA) spokesperson Randi Brown has issued a statement praising the bill, saying:

“The SPGA welcomes Assemblyman Calabrese’s bill. The SPGA and its members are advocates for clear regulations that enable transparent, innovative, and responsible social and promotional gaming experiences. The bill aligns with our core objective of reinforcing the well-established legality and legitimacy of social sweepstakes games, which millions of American adults enjoy.”

As arguably the second biggest gambling state in the US (and definitely in the Top 3), New Jersey has a rich gambling history going back to the ’70s.

In recent years, online sweepstakes casinos have been met with lawsuits in several states. However, they remain legal and valid in most of the US and this bill mainly seeks to establish a regulatory framework.

To us, putting sweepstakes casinos under the same light as real money casinos is unfair, especially requiring them to partner with land-based casinos to operate in NJ when this isn’t viable. Hawaii’s approach to social gaming seems more original and feasible, but at least NJ regulators aren’t taking the same stance as West Virginia and Michigan authorities.

Alex Windsor

Author: Alex Windsor

Updated:

The man, the myth, the legend, Alex is the head honcho in charge of SweepsKings, where he puts his 15+ years of iGaming experience to good use. He ensures all articles are accurate and motivates the team to produce truly exceptional content. Whenever you receive an exclusive bonus from SweepsKings or learn about a brand-new sweepstakes casino, you can thank Alex!
The man, the myth, the legend, Alex is the head honcho in charge of SweepsKings, where he puts his 15+ years of iGaming experience to good use. He ensures all articles are accurate and motivates the team to produce truly exceptional content. Whenever you receive an exclusive bonus from SweepsKings or learn about a brand-new sweepstakes casino, you can thank Alex!