New Jersey Lawmakers Target Sweepstakes Casinos With Proposed Ban

New Jersey lawmakers are advancing legislation to ban sweepstakes casinos, which have seen substantial growth in the online gaming sector. Assembly Bill 5447, introduced by Assemblyman Clinton Calabrese, would prohibit platforms that use virtual currency to offer cash prizes and introduce penalties for illegal gambling operations. The bill received unanimous support from the Assembly's Tourism, Gaming, and Arts Committee after remaining inactive for nearly eight weeks. The legislation aims to prevent unauthorized gambling, as these casinos operate without voter approval, potentially violating state constitutional requirements. Industry representatives express concerns about the shift from regulation to prohibition, which creates uncertainty.

The proposed laws target the dual-currency model commonly used by sweepstakes casinos, aiming to close loopholes that allow these operations to flourish. The Responsible Gambling Task Force, established by Governor Murphy, backs the ban, advocating for a safer gaming environment. Similar legislative efforts are underway in other states, including New York and Connecticut, highlighting a growing trend to regulate or prohibit sweepstakes gaming.