New Jersey’s A5447 Anti-Sweepstakes Bill Gains Steam in Assembly

A Big Step Toward a Ban

New Jersey’s push to outlaw online sweepstakes took a step forward when Assembly Bill A5447 passed unanimously through the Assembly Tourism, Gaming, and Arts Committee.

Sponsored by Assemblymen Clinton Calabrese and Sterley Stanley, A5447 targets platforms using virtual currency for cash prizes, labeling them unregulated gambling.

The bill, dormant for nearly two months, now heads to the Assembly Consumer Affairs Committee. New Jersey joins states like New York and Maryland in cracking down on sweepstakes casinos.

From Regulation to Prohibition

Calabrese initially proposed regulating sweepstakes casinos in January 2025 with A5196, aiming to license them like online casinos. A5447 flips the script, seeking a total ban.

Stephan Finkel, from the Attorney General’s office, argued that sweepstakes casinos bypass New Jersey’s constitutional requirement for voter-approved gambling, making them “unconstitutional.”

The bill’s amendments sharpen its focus, defining prohibited games as those mimicking casino-style or sports betting and prizes as tokens exchangeable for value, directly or via third-party markets.

A5447 means business with stiff penalties: a $100,000 fine for a first offense and up to $250,000 for a second, plus potential legal action.

The Sports Betting Alliance, representing giants like DraftKings and BetMGM, backs A5447, arguing sweepstakes casinos dodge licensing, taxation, and responsible gaming rules.

“It’s essentially a legal maneuver that allows them to replicate the experience of online casinos while avoiding regulation,” said SBA’s Eric Scheffler.

Critics, like the Social and Promotional Games Association, call the bill “reckless,” warning it could harm lawful promotions.