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New Jersey Gov. Phil Murphy’s inaction could still lead to a sweepstakes casinos ban in New Jersey.
Legislation to make sweepstakes casinos illegal in New Jersey passed both chambers of the Legislature on June 30 and was sent to Murphy’s desk, where it still sits.
Even without a signature from the governor, the measure becomes law after 45 days, which is Aug. 14.
It appears as if the sweepstakes casino ban is a matter of when, not if, at this point.
How sweeps can still exist
Assemblyman Clinton Calabrese introduced a bill in January that would have allowed sweeps to legally operate in New Jersey. He totally reversed course in March, deciding that banning sweeps would help New Jersey online casinos.
The new measure then quickly moved through the Legislature.
Interestingly, the bill does not outright ban all sweepstakes casinos in the Garden State. They can still operate if there is no cost to a player. Prizes can include food or drink, or other low-value merchandise such as mugs, trinkets, or mementos that do not exceed $20.
The New Jersey Division of Gaming Enforcement and the Division of Consumer Affairs are in charge of oversight.
How the bill describes sweeps
Most sweeps operators offer casino-style games, including slots and table games. Some operators even offer sports betting.
Calabrese defined banned sweepstakes casinos in Assembly Bill 5447.
“‘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.”
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.
