New Jersey has become the latest US state to approve an anti-sweepstakes proposal. If signed off by Governor Phil Murphy, the bill will become law immediately, effectively forcing all sweeps casinos to withdraw from the jurisdiction.
The Garden State now joins Montana, Connecticut, Nevada, Louisiana, and New York in drawing a clear, anti-sweeps line in the sand in 2025 (however, it should be noted that the Louisiana governor vetoed its bill, and the bill in New York is yet to be transferred to the governor for a signature).
NJ’s Bill Definitively Bans Sweepstakes Casinos
A5447 amends various existing NJ gambling laws, and most notably, it explicitly outlaws sweepstakes gaming in which players may participate “by paying or proffering something of value, including, but not limited to, an entry fee for the opportunity to win or receive a prize or prize equivalent”.
Fines can reach up to $250,000 per day for as long as the offence is committed, making A5447 one of the most financially threatening bills for operators; these sweepstakes-related penalties are to be enforced by the Division of Consumer Affairs.
The bill also details cases in which sweepstakes promotions would be exempt from punishment, quieting any claims that brands like McDonald’s and Starbucks, with their occasional sweepstakes promotions, would be affected.
Later on, it goes on to edit other gambling laws, including wording on:
- Rigging or improperly influencing events
- General gambling offenses and definitions
- Promotion of gambling activities, potentially affecting affiliates who market gambling products
- Maintenance of gambling resorts and premises
- Swindling, cheating, and related fraud offenses
After originally being introduced by Assemblyman Clinton Calabrese in March, A5447 was finally passed in the Assembly on June 30. It was then passed in the Senate only minutes later with no debate or discussion, supposedly due to legislative urgency for the July 1 budget deadline.
Opposing Voices Fall on Deaf Ears
This was all despite a plea from World Poker Tour (WPT) President and CEO Adam Pliska, who defended the sweepstakes format he uses on his ClubWPT poker site. Pliska noted that in 15 years of operation, he’d never received a lawsuit or a cease and desist order. He also suggested sales taxes on online currency purchases as a way to raise state money from the vertical, but his arguments essentially fell on deaf ears with a 69-10-1 vote in the Assembly and a 34-5 vote in the Senate straight after.
The Social and Promotional Games Association (SPGA) issued a statement calling the bill “a sweeping and ill-conceived ban on promotional sweepstakes-style gaming that has been rushed through the legislature to appease entrenched casino interests.” It urged NJ Governor Phil Murphy to veto the proposal, then went on:
“The bill is a direct contradiction to the sensible regulatory framework introduced earlier this year by Assemblyman Clinton Calabrese, an approach that emphasized oversight, licensing, and taxation over prohibition.”
This was a reference to the fact that Assemblyman Calabrese originally introduced A5196 to legalize and regulate sweepstakes casinos back in January. It’s the only bill this year that looked to potentially regulate the sweepstakes format, but it was met with a swift U-turn when Calabrese introduced A5447 in its place soon after. New Jersey was perhaps one of the best shots at legalization for the vertical, with online casino gaming, sports betting (online and in-person), and in-person casinos all currently legal.
We now wait to see Governor Murphy’s decision on the bill. As we saw in Louisiana, it’s by no means guaranteed that the Governor will sign these bills into law. However, the veto decision there was swiftly followed up by a raft of cease and desist letters to sweepstakes casinos.
Next Steps for NJ Players
Either way, this development in NJ represents a major setback for the industry, with more than 100 sweeps platforms currently active in the Garden State. This includes major sites like Chumba, WOW Vegas, and RealPrize.
Importantly, A5447 is set to take effect immediately upon signature. Therefore, NJ sweepstakes players should brace themselves for operators withdrawing from the state imminently, and we advise processing any potential SC redemptions as soon as possible to avoid disappointment.
Author: Joseph Allen
Updated:
