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Sweepstakes casinos have been officially banned after Gov. Phil Murphy signed the bill into law on Friday afternoon.
Assemblyman Clinton Calabrese introduced legislation in January, which turned into a sweeps ban in March. The bill advanced through both the New Jersey Assembly and Senate within minutes on June 30, indicating the importance of the bill.
Murphy stamped his seal of approval, signing the bill 46 days after it passed. The ban is meant to aid New Jersey online casinos.
Sweepstakes can still operate in NJ
A ban on sweepstakes casinos was inevitable. The bill would have automatically become law once the legislation season returned from summer recess.
However, Murphy put pen to paper while the session was at recess. The summary of A5447 reads:
“This bill prohibits unlawful gambling operations in this State, including a model of wagering frequently referred to as ‘sweepstakes,’ and establishes new penalties for unlawful gambling operations and practices.
“Under the bill, ‘sweepstakes’ are expressly prohibited. The bill defines ‘sweepstakes’ to mean 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 New Jersey Division of Gaming Enforcement and the Division of Consumer Affairs are in charge of oversight and enforcement.
Violators of the potential new law would face up to a $100,000 fine for the first offense and a $250,000 fine for subsequent offenses.
There is still a way sweeps can exist. They can operate if there is no cost to a player. Prizes can include food or other low-value merchandise such as mugs, trinkets, or mementos that do not exceed $20.
New Jersey online casinos become the only form of legal online casino games within the state, which could help boost the industry.
