Governor Phil Murphy has officially signed Assembly Bill A5447 into law, banning sweepstakes-style casinos in New Jersey as of August 15, 2025. The measure follows rapid passage earlier this summer by both legislative chambers and takes effect immediately, closing a loophole in the state’s gambling regulations.
What the Ban Covers
The law targets dual-currency wagering platforms, where players use virtual tokens to ultimately redeem real-money prizes. These games, often offered under the guise of sweepstakes, are now treated as unlawful gambling operations. Enforcement duties fall under the jurisdiction of the Division of Consumer Affairs and the Division of Gaming Enforcement.
Heavy Penalties for Violations
A5447 introduces significant penalties for those who operate or promote sweepstakes casinos. First-time offenders may be fined up to $100,000, while repeat violations can result in penalties as high as $250,000 per offense. Criminal consequences also extend to affiliates and influencers who promote such platforms.
How the Ban Was Fast-Tracked
The bill passed with overwhelming support: 69–10–1 in the Assembly, followed swiftly by a 34–5 vote in the Senate. There was minimal debate, signaling strong bipartisan consensus. Following signature or inaction by the governor, these laws are effective immediately, cutting off any grace period for operators.
Pushback from the Industry
Industry groups like the Social and Promotional Games Association, along with operators such as the World Poker Tour, had urged for regulation instead of prohibition, arguing the model offered consumer choice and contributed to entertainment innovation. However, legislators pushed forward, citing concerns over consumer protection and the integrity of New Jersey’s regulated gaming market.
Immediate Impact and Market Shift
Following the law’s passage, major sweepstakes operators, including brands like Global Poker and Chumba Casino, began notifying New Jersey users of service restrictions or full withdrawal. Moving forward, only free-play contests awarding low-value, non-monetary prizes (such as items under $20) remain permissible under exceptions to the ban.
Broader Significance
New Jersey now joins a growing list of states, such as Connecticut, Montana, and pending cases in New York, in explicitly outlawing sweepstakes casino models. The broader crackdown reflects a tightening regulatory stance that prioritizes formal gambling channels over promotional loopholes.
Sources: iGaming Business, The Press of Atlantic City
