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A ban on sweeps casinos took another step on Thursday when bill AB 5447 advanced out of the Assembly Committee. It is now in the hands of the Assembly Consumer Affairs Committee with amendments possible.
New Jersey Assemblyman Clinton Calabrese introduced the bill back in March, which did not have official text, yet. It was a pivot from the previous legislation he brought forth in January, which would have allowed sweeps.
There is now 20 pages of text to AB 5447 that categorizes sweeps casinos as unlawful. The Garden State already provides legal online casinos and sports betting.
What the bill says
Calabrese and Assemblyman Sterley Stanley, a co-sponsor of the bill, has added plenty of language to the bill. The synopsis of the bill reads:
“Prohibits sweepstakes model of wagering; establishes new penalties for unlawful gambling operations and practices; directs Division of Consumer Affairs and Division of Gaming Enforcement to enforce penalties.”
The bill also defines what sweepstakes are. The assemblymen described the vertical as:
“’Sweepstakes’ means 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.”
The Division of Consumer Affairs and the New Jersey Division of Gaming Enforcement (DGE) have jurisdiction over sweeps. Both regulatory bodies are able to enforce penalties against sweeps operators.
Sweepstakes casinos can face up to a $100,000 fine for the first offense and a $250,000 fine for a second one. The Division of Consumer Affairs and the DGE can also take legal measures.
Calabrese and Stanley did include a small way for sweeps to exist. However, it must be at no cost to the player and it can only involve the purchase of food or non-alcoholic beverages at a cost no more than $20.
The state is another step closer to protect the already legal verticals of gambling that are in place.
