New Jersey Lawmaker Proposes Ban on Sweepstakes Gaming

New Jersey, comes just two months after Calabrese proposed legislation to regulate and legalize the industry—a shift that has left many questioning the reasoning behind his reversal.

Reversal from Regulation to Prohibition

Calabrese’s latest legislative proposal, Bill A5447, marks a sharp departure from his earlier stance. In January, he introduced Bill A5196, which sought to legalize sweepstakes gaming by bringing it under regulatory oversight, licensing requirements, and taxation, similar to the state’s legal iGaming sector. The SPGA had fully endorsed that proposal, viewing it as a progressive step toward regulating the industry.

Now, with the introduction of Bill A5447, Calabrese has moved in the opposite direction, advocating for a complete ban. The bill aims to “prohibit the sweepstakes model of wagering” and impose “new penalties for unlawful gambling operations and practices.” Enforcement would fall under the jurisdiction of both the New Jersey Division of Consumer Affairs and the Division of Gaming Enforcement.

The SPGA has expressed its frustration with this shift. In a statement, the organization asserted: “Our take pride in driving innovation and providing safe, engaging digital entertainment to New Jersey consumers. As the regulatory landscape continues to evolve, we remain committed to working with policymakers to ensure that millions of American adults can continue enjoying their preferred gaming experiences within a properly regulated environment.”

Sweepstakes gaming operates differently from traditional online casinos and sportsbooks. It allows players to receive free coins for gameplay, while additional coins can be purchased and later redeemed for cash and prizes in games like slots, table games, and sports betting.

Companies like McLuck, Chumba Casino, and High 5 operate in this space, but their legal standing varies across jurisdictions. These operators remain untaxed and unregulated in many U.S. states, leading to increased scrutiny. Estimates suggest that the sweepstakes gaming industry could generate $6.9 billion in revenue by 2025.

Despite its rapid growth, the industry has faced increasing pressure from regulatory bodies. The American Gaming Association (AGA) has urged states to assess their gaming laws to determine the legality of sweepstakes operators. Additionally, the Indian Gaming Association has publicly declared sweepstakes gaming illegal, arguing that revenue should go to tribal and commercial gaming enterprises rather than unregulated entities.

Growing Legal Challenges and Legislative Uncertainty

New Jersey, one of seven states with legal iGaming, currently has nearly 30 licensed online casino and poker operators and over a dozen mobile sportsbooks. However, the status of sweepstakes gaming remains uncertain. Recently, a New Jersey resident filed a lawsuit against multiple sweepstakes gaming companies, including McLuck, High 5, Wow Vegas, and CrownCoins, alleging they were operating illegally. Apple and Google were also named in the lawsuit for ing the platforms.

Other states are also weighing their approach to sweepstakes gaming. This week, the Maryland Senate Budget and Taxation Committee voted 13-0 in favor of a bill that would ban social operators in states where iGaming is not legal. Lawmakers in New York, Mississippi, and Connecticut are also considering crackdowns on sweepstakes platforms.

The SPGA, which was founded in September 2024 to advocate for responsible social sweepstakes gaming, has been actively countering regulatory efforts. Last month, the association clashed with the AGA after its CEO, Bill Miller, labeled sweepstakes casinos as part of the broader problem of unregulated gambling. The SPGA dismissed the claim, emphasizing that sweepstakes are legal in most states and should not be equated with offshore or illegal sportsbooks.

Calabrese’s rapid shift from regulation to prohibition has created uncertainty about the future of sweepstakes gaming in New Jersey. His previous attempt to regulate the industry failed to progress beyond the Assembly’s Tourism and Arts Committee. Whether Bill A5447 will gain traction remains unclear, especially with the 2025 elections likely to shape legislative priorities.

The SPGA has made its position clear, urging lawmakers to reject the proposed ban and instead the balanced regulatory framework initially introduced. “We urge lawmakers to reject Assembly Bill 5447 and instead pursue the balanced regulatory approach previously introduced to protect consumers while allowing innovation to flourish in New Jersey’s dynamic gaming market,” the association stated.

With legislative discussions ongoing, the debate over sweepstakes gaming in New Jersey is far from over.

Source:

‘’SPGA FIGHTS TO PROTECT PLAYER CHOICE AS NJ BILL THREATENS TO KILL SWEEPSTAKES GAMING’’, lrealmoneyaction.casinowinning.net, March 11, 2025.