New Jersey just made a clear stand. On August fifteen, Governor Phil Murphy signed bill A5447 into law, closing the door once and for all on sweepstakes casino sites in the state.
Sweepstakes platforms have blurred the edges of regulation by offering so-called “gold coins” alongside “sweeps coins,” the latter redeemable for real prizes. Critics say that dual-currency model slices through the legal gap and acts as a back door to real-money online gambling in jurisdictions where it remains unlicensed.
Details of the New Law
Here is what bill A5447 brings to the table:
• It outlaws the sweepstakes wagering model in full.
• It sets out fresh penalties for anyone operating in violation.
• It hands enforcement power to the New Jersey Division of Consumer Affairs together with the Division of Gaming Enforcement.
New Jersey is now the sixth state to outlaw sweepstakes casinos this year. Connecticut, Montana and Nevada have already enacted similar measures. New York Legislature passed a ban, though it remains unsigned. Louisiana’s efforts failed after a veto. Regulators in several other states have also sent cease-and-desist notices to operators such as VGW.
Industry Response and Broader Impact
Industry pushback did not fall silent. The Social and Promotional Games Association spoke out, urging the governor to veto the bill. They warned that the legislation skews toward fear over facts, undercuts innovation and risks New Jersey’s image as a progressive hub for entertainment technology.
But New Jersey’s move carries weight. The state already ranks among the strongest online gambling markets in the country and has long been known for regulated and transparent operations. This new regulation shows the state continues to tighten oversight even beyond existing iGaming safeguards.
Lawmakers have drawn a bright stop sign and backed it up with enforcement muscle. For players, operators and regulators, the message is clear. Sweepstakes casinos no longer get a pass in the Garden State.
