A New Jersey lawmaker is taking his fight against sweepstakes casinos one step further.
A new bill in the New Jersey Legislature, Assembly Bill 5447, aims to ban sweepstakes casinos. Sponsored by Rep. Clinton Calabrese, this bill targets platforms where users employ virtual currency to win cash prizes.
Sweepstakes casino apps and websites are very popular because they allow players to enjoy casino-style games without making a cash deposit. Upon signing up, players receive free gold or sweepstakes coins. They also have the option to purchase additional tokens with a credit or debit card. This system of distributing free coins for registration or login helps these platforms avoid traditional cash betting laws in states like New Jersey.
Social casinos are also a hit amongst many because they work much the same way.
The First Option Was to Regulate Sweepstakes Casinos
This bill represents a step up from Rep. Calabrese’s first bill, in which he attempted to regulate sweepstakes casinos instead of banning them entirely. He introduced Assembly Bill 5196, which, if passed, would categorize sweepstakes and social casinos as internet gaming operators. This would require these platforms to partner with New Jersey casinos, similar to real-money online casinos.
The proposed bill would also introduce new penalties for those running unlicensed gambling operations, with enforcement falling to the Division of Consumer Affairs and the Division of Gaming Enforcement.
SPGA Opposes Bill Banning Sweepstakes Casino Games
In response to these legislative efforts, the Social and Promotional Games Association (SPGA) has come out strongly against Assembly Bill 5447. They argue that the bill contradicts the progressive gaming policies New Jersey is known for, and oppose the move toward outdated prohibition methods.
The SPGA points out that this bill contradicts Assemblyman Calabrese's earlier proposal, which aimed to regulate, license and tax these platforms, thereby aligning them with other gaming entities.
New Jersey has always been a leader in gaming regulation, setting high standards with innovative licensing approaches for digital entertainment. The SPGA emphasizes the importance of continuing this forward-thinking mindset to support innovation and ensure safe gaming experiences for New Jersey residents.
The association is committed to working with policymakers to maintain a balanced regulatory environment that protects consumers while encouraging the growth of the gaming market. They call on lawmakers to reject Assembly Bill 5447 and encourage a return to the earlier regulatory approach that balances consumer protection with industry innovation.
Other States Considering Bans on Sweepstakes Casinos
Many states are considering banning or closely regulating online sweepstakes casinos, making the legal situation unclear.
Sweepstakes casino bills are being discussed in Mississippi, Connecticut, Maryland and New York. But now that New Jersey is thinking about a new law to enforce stricter rules, it might encourage other states to do the same.
But, whether these measures will work in the long run depends on legal disputes and how well authorities can enforce the rules.
