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New Jersey lawmakers approved a bill to ban sweepstakes casinos on Monday. It needs just Gov. Phil Murphy’s signature to become law.
A5447 advanced through the New Jersey Assembly on a 69-10 vote then passed the Senate on a 34-5 vote within minutes.
Sweepstakes casinos have been controversial as of late in the gambling industry, and not just in New Jersey. Other states are also considering a ban on sweeps, including New York and California.
A complete reversal
Assemblyman Clinton Calabrese introduced a bill in January that would have allowed sweeps to legally operate in New Jersey. He reversed course in March, deciding to ban sweeps.
Calabrese has not publicly explained his reason for the 180-degree turn, but he may have been persuaded by New Jersey online casinos, which see sweeps as direct competition.
Many sweeps offer similar games as legal online casinos and sports betting apps in New Jersey, which puts a strain on the regulated industry. A5447 describes sweeps with the following definition:
“‘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 bill says that illegal games include “casino-style games such as slot machines, video poker, table games such as roulette, blackjack, craps, and poker; lottery games such as draw games, raffle, bingo, and keno; and sports wagering.”
The New Jersey Division of Gaming Enforcement (DGE) and the Division of Consumer Affairs (DCA) are in charge of oversight.
A way for sweeps to exist
Calabrese did include a way for sweeps to survive in New Jersey. There must be no cost to a player. Prizes can only involve the purchase of food or drink, or other low-value merchandise such as mugs, trinkets, or mementos that does not exceed $20.
Sweeps operators could face up to a $100,000 fine for the first offense and a $250,000 fine for subsequent offenses under the bill. The DCA and the DGE can also take legal actions.
The bill has moved rather quickly through the legislative process, especially on Monday this week, when it moved through both chambers. It was part of a mad dash to get the bill on Murphy’s desk by the June 30 deadline, which is the end of the 2024/2025 fiscal year.
