The law targets “dual-currency” sites that mimic casino play with virtual “Gold Coins” and redeemable “Sweeps Coins.” It also cracks down on proxy betting—when someone places wagers on behalf of another person.
State officials say the goal is to close a loophole and bring gray-market activity under clearer rules, with agencies gaining new tools to shut down illegal operators and protect consumers.
How the Ban Works
The bills A5447 and S4282 prohibits the “sweepstakes model of wagering,” which uses two types of credits to make casino-style games look “free” while allowing cash redemption. Examples include slots, blackjack, roulette, and poker offered on sites that are not licensed as New Jersey online casinos.
Under the new law, offering these games to Garden State players is illegal unless they meet narrow exceptions where no purchase is required and prizes function like traditional promotions (for example, classic brand sweepstakes).
Enforcement authority now spans the Division of Gaming Enforcement and the Division of Consumer Affairs, giving regulators a coordinated way to investigate, order sites to stop, and pursue penalties.
The law sets steep fines: $100,000 for a first offense and $250,000 for subsequent violations, plus additional penalties for ignoring cease-and-desist orders.
Separate provisions also address proxy betting and related conduct, reflecting broader worries about unlicensed gambling and schemes that can harm players or distort regulated markets.
What It Means for Players and Operators
For players, this means popular sweepstakes casinos that accepted New Jersey users are expected to block access or exit the state to avoid penalties. Residents still have many legal options: the state’s licensed online casinos and sportsbooks remain available and continue to be regulated for fairness, responsible gaming tools, and payout protection.
Traditional promotional sweepstakes that don’t mimic gambling mechanics can continue if they follow the law, including rules about free entry and how prizes are awarded.
For operators, the message is clear: the “play for free, redeem for cash” model is off-limits in New Jersey.
Regulators now have explicit authority to act, and the fine structure creates a strong deterrent to testing the gray area. Industry groups backing the ban argue it protects consumers and the integrity of the legal market.
Operator coalitions opposed to the measure say it’s overreach, warning that the definition could catch lawful promotions and reduce entertainment choices. Those debates may continue in courts and legislatures elsewhere, but in New Jersey the policy is set—the sweeps casino era is over.
