New Jersey Cracks Down on Sweepstakes Casinos with A5447, Awaits Governor’s Signature
New Jersey’s legislature passed Assembly Bill A5447 on June 30, 2025, banning sweepstakes casinos and tightening the state’s grip on unregulated gaming.
A Swift Ban on Sweepstakes
The bill, which sailed through the Assembly with a 69-10 vote and the Senate by 34-5, now sits on Governor Phil Murphy’s desk for approval, potentially making New Jersey the sixth state to outlaw these platforms. A5447 targets the “sweepstakes model of wagering,” a system critics say exploits legal loopholes to mimic casino-style gaming without proper oversight.
Introduced in March 2025 by Assemblyman Clinton Calabrese, A5447 moved with unprecedented speed, passing both chambers in a single day with minimal debate, a process the Social and Promotional Games Association (SPGA) called a rush to “appease entrenched casino interests.”
The bill defines sweepstakes as promotional events where prizes are awarded, often through dual-currency systems where players buy virtual coins to play casino-style games like slots or poker, redeemable for cash. These platforms, such as Global Poker and ClubWPT Gold, have operated in a legal gray area, sidestepping traditional gambling laws by offering “free” entry options. A5447 aims to “clarify any grey zones,” outlawing such models unless they meet strict criteria, like offering no-cost entry and avoiding sports-based outcomes.
Industry Pushback and Tribal Influence
The sweepstakes industry isn’t going down without a fight. The SPGA urged Governor Murphy to veto A5447, arguing it “mischaracterizes an entire industry, ignores data, undermines innovation, and puts New Jersey’s reputation as a tech leader at risk.”
Jeff Duncan, SGLA executive director, emphasized that sweepstakes platforms use the same promotional frameworks as brands like Microsoft and Marriott, with built-in age and geolocation protections. “This is not gambling—it’s marketing,” Duncan said, warning that the ban could disrupt legitimate promotions and drive players to unregulated offshore sites.
The World Poker Tour’s CEO, Adam Pliska, pleaded for a compromise, noting that WPT’s ClubWPT has operated legally for 15 years without issues, suggesting regulation could generate tax revenue instead of a blanket ban.
The National Context
New Jersey’s move makes it the sixth state to target sweepstakes casinos, following Connecticut, Montana, Nevada, New York, and Louisiana (though Louisiana’s ban was vetoed by Governor Jeff Landry, who argued existing laws sufficed).
States like Arizona and Michigan have issued cease-and-desist letters to operators, while California’s proposed ban, backed by tribes, is gaining traction.
The SPGA warns that prohibition could push players to riskier offshore platforms.
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