A bill proposing a ban on sweepstakes casinos in New Jersey was accelerated through the Assembly and Senate on June 30 in a race to meet the July 1 legislative deadline.
First, lawmakers in the Assembly voted 69-10-1 in favor of A5447 before minutes later the Senate approved the proposal in a 34-5 vote. The bill will now go to Governor Phil Murphy to decide whether to sign off on the ban before the legislative session ends on July 1.
There was reportedly no discussion of the bill before the votes as lawmakers faced a race against time to get through all the remaining legislation before the deadline.
Bill Targets Sweepstakes Dual-Currency System
The terms of the bill target sweepstakes casinos by banning the use of a dual-currency system that facilitates casino gaming.
The bill 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.”
Additionally, it prohibits these being used to play casino-style games, which is defined as “casino‑style games such as slot machines, video poker, table games such as roulette, blackjack, craps, and poker; lottery games … and any game that mimics or simulates such casino‑style games or sports wagering.”
Enforcement will be overseen by the Division of Consumer Affairs and the Division of Gaming Enforcement, with penalties set at $100,000 for a first offense and $250,000 for subsequent violations.
SPGA Urge Gov. Murphy To Veto Bill
Sweepstakes advocate group, the Social and Promotional Gaming Association (SPGA), urged Gov. Murphy to use his power to veto the legislation.
“Governor Murphy has an opportunity to do what the Legislature would not—listen to facts, not fear,” said an SPGA spokesperson.
“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.”
A similar bill passed through both chambers in Louisiana, but Governor Jeff Landry chose to veto the legislation. The SPGA celebrated the decision, but Landry cited the powers Louisiana already has to target unregulated gambling companies, and the Gaming Control Board followed up by sending 40 cease-and-desist letters to a range of operators, including sweepstakes platforms.
Governors in Montana and Connecticut signed off on legislation to ban sweepstakes in the states, while a similar bill in New York awaits governor approval. It si expected that Gov. Kathy Huchal will sign off on the legislation and most sweepstakes operators have already exited the Empire State.
New Jersey Increases Taxes On Gambling
In addition to passing legislation to ban sweepstakes, New Jersey lawmakers have also approved a move to increase the taxes on regulated gambling in the state. Gov. Murphy initially proposed a new rate of 25% on both New Jersey sports betting and online casinos.
After discussion, it was eventually decided to include a new rate of 19.75% on gambling in the new state budget. This marks an increase from 13% for sports betting and 15% for New Jersey online casinos.
At the current rates, New Jersey has collected almost $1 billion in tax revenue from regulated gambling in both 2024 and 2023. Unregulated casinos, such as sweepstakes, are estimated to have generated $1.5 billion last year, with unlicensed sportsbooks, such as offshore operators, generating almost $1 billion.
The move to increase taxes on regulated operators and ban sweepstakes will look to safeguard the high amount of tax the state collects on gambling. New Jersey’s total gambling revenue of around $6.3 billion last year ranks it as the third-highest in the country, behind only New York and Nevada.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
