In a fresh move, authorities in New Jersey have prohibited sweepstakes casinos as part of their ongoing efforts to tighten regulations.
New Jersey Cracks Down on Sweepstakes Casinos
New Jersey has taken a firm stance against sweepstakes casinos with the signing of bill A5447 into law by Governor Phil Murphy in August 2025. This legislation, effective as of August 14, 2025, aims to close loopholes that allowed unregulated real-money wagering through a two-currency system involving "gold coins" and "sweeps coins" redeemable for cash prizes.
The new law grants enforcement authority to the New Jersey Division of Consumer Affairs and the Division of Gaming Enforcement to take action against operators who continue offering sweepstakes casino games. Penalties for violations are explicitly set under the new law, although specific penalty details require further lookup.
The legislative move reflects a trend toward tighter regulation and elimination of unlicensed online gaming under the guise of sweepstakes in New Jersey. However, the ban has faced strong opposition from various industry trade groups defending the sweepstakes casino model. The Social Gaming Leadership Alliance (a trade coalition) and other sweepstakes stakeholders have voiced concerns and attempted to work with lawmakers and regulators to preserve this business model.
Despite these efforts, the legislative move aligns with similar bans recently adopted or proposed in other states such as Montana, Connecticut, Louisiana, and Washington. The state’s approach signals a stricter regulatory environment focusing on consumer protection and legal clarity in online gambling.
In these games, players are not technically required to pay to participate, as free play options are always available. Examples of household names using sweepstakes-style games include McDonald's Monopoly campaign and Publishers Clearing House games. However, the fight over sweepstakes-style gaming is far from over, with New York's bill regarding sweepstakes casinos still awaiting Governor Kathy Hochul's signature.
Summary
- New Jersey has banned sweepstakes casinos with the signing of bill A5447 into law by Governor Phil Murphy in August 2025.
- The legislation, effective as of August 14, 2025, grants enforcement authority to the New Jersey Division of Consumer Affairs and the Division of Gaming Enforcement to take action against operators who continue offering sweepstakes casino games.
- Penalties for violations are explicitly set under the new law.
- The legislative move reflects a trend toward tighter regulation and elimination of unlicensed online gaming under the guise of sweepstakes in New Jersey.
- The ban has faced strong opposition from various industry trade groups defending the sweepstakes casino model.
- The fight over sweepstakes-style gaming is far from over, with New York's bill regarding sweepstakes casinos still awaiting Governor Kathy Hochul's signature.
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