The Assembly passed bill A5447 by a vote of 69-10-1, and the Senate followed with a 34-5 vote. The measure labels the sweepstakes model—a dual-currency system where “sweeps coins” can be exchanged for prizes—as illegal online gambling.
It now heads to Governor Phil Murphy’s desk, and if he signs it, the ban will take effect immediately. Enforcement will fall to the Department of Consumer Protection and the Division of Gaming Enforcement.
What the Law Covers
Bill A5447 defines a sweepstakes operation as any game that offers something of value through a dual-currency format. It targets sites where players buy virtual credits alongside free “sweeps coins” and then exchange those coins for cash or prizes.
The law also criminalizes the promotion of these sweepstakes, which could affect affiliates and influencers. First-time violators face fines up to $100,000, and repeat offenders can be fined up to $250,000.
Beyond sweepstakes casinos, the bill outlaws proxy betting—using another person’s account to place wagers—and punishes anyone who rigs outcomes or bets with inside information.
By defining these activities as crimes, New Jersey aims to close a loophole that allowed unregulated gaming to grow.
Reactions and Next Steps
The Social and Promotional Games Association (SPGA) urged Governor Murphy to veto the bill, calling sweepstakes platforms “legal” and “enjoyed responsibly by millions.” SPGA argued New Jersey should continue its “forward-thinking” approach instead of reverting to outdated prohibition.
Meanwhile, the World Poker Tour made a last-minute plea, noting its ClubWPT products have operated for 15 years without legal issues. Outside gaming circles, some worry the ban could push players into the black market or to unregulated sites. Bill A5447 is part of a broader budget package that also raised tax rates for online sports betting and iGaming operators.
With the governor’s signature, New Jersey will join Montana, Connecticut, and New York in banning sweepstakes casinos, while other states continue to debate similar measures.
