Everyone talks about growth. New Jersey publishes the receipts. When a regulated online casino market puts its numbers on the table every month, you can see what works and...
New Jersey to approve the ban on online sweepstakes casinos
New Jersey prepares to approve a ban on online sweepstakes casino operations this week, joining other states repressing the controversial gaming model.
The Assembly first passed the bill A5547 with a 69-10-1 vote. The Senate cleared it 34-5 in a quick session on Monday that left little room for debate. The legislation now waits for the signature of Governor Phil Murphy. If signed, New Jersey’s ban would take effect immediately.
This measure makes New Jersey the 6th state to restrict sweepstakes casino operations. Similar bills have already been passed in Montana and Connecticut, while Nevada and New York are still weighing down on the decision. In Louisiana, Governor Jeff Landry vetoed a similar measure in June, saying existing powers already gave regulators the tools they needed.
New Jersey’s bill targets online platforms that use a dual-currency system, but makes exceptions to protect traditional contests run by fast-food chains and other consumer brands. Enforcement responsibilities will fall to the state’s Division of Consumer Affairs and Division of Gaming Enforcement. The law also criminalizes promoting sweepstakes gambling, potentially affecting affiliates and influencers who market such platforms.
The bill extends beyond sweepstakes, trying to tighten penalties around sports betting. New legislation addresses insider betting and introduces charges for “bearding,” where someone places bets using another person’s account to avoid detection.
The Social and Promotional Games Association (SPGA) issued a statement insisting that Governor Murphy reject the bill:
“The law could have unintended consequences for a broader array of promotional platforms, including those operated by companies like Marriott and Microsoft. This bill doesn’t just mischaracterize an entire industry; it ignores data, undermines innovation, and puts New Jersey’s reputation as a forward-thinking leader in tech and entertainment at risk.”
New Jersey’s move follows a wave of enforcement actions across the US. Regulators in Michigan, Mississippi, Arizona, and Louisiana have each sent cease-and-desist notices to sweepstakes operators in recent months, while California lawmakers are considering a prohibition bill backed by tribal gaming interests.
Lawmakers in New Jersey and Vermont have introduced measures to limit and ban specific types of event contracts in an effort to tighten control over prediction markets.On...
