New Jersey lawmakers move to ban sweepstakes gambling

New Jersey lawmakers have introduced legislation to ban sweepstakes gambling, arguing that the promotional prize-based games too closely resemble traditional gambling and operate in a regulatory gray area.  

State Senator John Burzichelli (D-Salem, Gloucester, Cumberland) and Assemblyman Clinton Calabrese (D-Bergen, Passaic) unveiled the proposal on Monday, citing concerns from gaming regulators.  

“Our regulators came to the Legislature and said, ‘These guys found a sweet spot, and they're operating in a gray area,’” Burzichelli stated. “We don’t have the reach we should have to protect consumers.”  

The bill defines sweepstakes gambling as a marketing or promotional event where prizes or equivalents are awarded, often using a dual-currency system.  

These platforms typically offer traditional casino games such as slots, roulette, blackjack, and poker, allowing players to either:  

• Play for free 
• Purchase virtual currency (gold coins), or  
• Use sweep coins, which can be redeemed for cash or prizes after an investment of time, money, or both.  

The American Gaming Association (AGA), the casino industry's national trade group, has warned that sweepstakes casinos operate without proper licensing or consumer protections.  

“There is no regulatory oversight to ensure that sweepstakes casinos adhere to essential responsible gaming protocols and consumer protection measures, creating an unsafe environment for players,” the AGA said in a statement. “That is why it is so critical for state gaming regulators and attorneys general to scrutinize the legality of sweepstakes casinos and take decisive action against any violations.”  

Under the proposed legislation, games would be exempt if they are truly free to play and not linked to monetary purchases. Sweepstakes linked to food, non-alcoholic beverages, or merchandise valued at $20 or less would also be allowed.  

Violators would face steep penalties, including a $100,000 fine for a first offense and $250,000 for each subsequent violation.  

The Social and Promotional Games Association, a trade group representing social and promotional game operators, strongly opposes the bill, calling it "reckless" and "shortsighted."  

“Our members take pride in driving innovation and providing safe, engaging digital entertainment to New Jersey consumers,” the association said in a statement. “We remain committed to working with policymakers to ensure that millions of American adults can continue enjoying their preferred gaming experiences within a properly regulated environment.”