New Jersey has officially joined the growing list of U.S. states cracking down on sweepstakes gambling. Governor Phil Murphy signed Assembly Bill 5447 into law, effectively banning dual-currency sweepstakes and proxy betting, while still permitting sweepstakes that offer free entry.
The bill, sponsored by Assemblyman Clinton Calabrese and Senator John J. Burzichelli, cleared both legislative chambers in late June. It defines a sweepstakes as any promotional, advertising, or marketing event—whether online or in-person—in which participants can win something of value, either directly or indirectly, such as through a dual-currency payment system that can be exchanged for prizes.
Businesses will still be allowed to run sweepstakes tied to the purchase of food or non-alcoholic beverages.
Violations of the new law come with steep penalties: $100,000 for a first offence and $250,000 for subsequent ones. Operators who ignore cease-and-desist orders could also face additional fines of $25,000 per violation.
In terms of proxy betting, the legislation makes it illegal for anyone to gamble with $1,000 or more on behalf of another person in exchange for 10% or more of the winnings. Such activity will now be treated as a disorderly persons offence.
New Jersey is not alone in tightening regulations. Sweepstakes gambling is already banned in New York, Washington, Michigan, Connecticut, and Idaho. Nevada and Montana are preparing to roll out bans this October, while lawmakers in Ohio, Massachusetts, and Illinois are currently reviewing similar proposals.
The Social Gaming Leadership Alliance (SGLA), however, has condemned the move. Executive director Jeff Duncan argued that lawmakers disregarded public opinion, stating:
Lawmakers in New Jersey have completely ignored their own constituents and enacted a ban that voters oppose. This law is a textbook example of government overreach that strips away entertainment choices from adults who should be free to make decisions about their own entertainment.
