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Governor Phil Murphy signed the measure on August 15, 2025, after the bill swiftly passed both state chambers earlier in the summer. The legislation targets sweepstakes casinos that use dual-currency models, where “gold coins” are used for gameplay while “sweeps coins” can be redeemed for real cash or prizes. Lawmakers argued that these platforms function as unregulated online casinos and undermine the state’s tightly controlled gambling market.
New Jersey now joins states like Montana, Connecticut, Nevada, New York, and Louisiana in prohibiting sweepstakes-style gambling. The move comes as the sector has rapidly expanded, drawing criticism from licensed operators and regulators who view the model as a loophole that sidesteps consumer protections and tax obligations.
Key Provisions and Enforcement
The new law bans sweepstakes operators from offering casino-style games that rely on a dual-currency system. However, traditional sweepstakes tied to retail promotions — such as giveaways linked to food, beverages, or small merchandise — remain legal. The legislation also addresses proxy betting and fraudulent practices, including insider information sharing and “bearding,” where one person wagers on behalf of another.
Enforcement will fall under the authority of the Division of Consumer Affairs and the Division of Gaming Enforcement. These agencies are now empowered to issue cease-and-desist orders, impose fines, and pursue restitution from operators who violate the law. Each day of noncompliance can be treated as a separate offense, raising the stakes for sweepstakes platforms that continue to operate in New Jersey.
Penalties and Industry Reaction
First-time violations of the law can result in fines of up to $100,000, while repeat offenses carry penalties of up to $250,000. Given that each day is counted as a separate violation, operators face the possibility of cumulative multi-million-dollar liabilities. The law aims not only to punish violators but also to deter new entrants from testing the legal boundaries of sweepstakes gambling.
Industry reaction has been divided. The Social Gaming Leadership Alliance criticized the ban as an overreach that removes entertainment options for adults, while advocates like the World Poker Tour’s CEO Adam Pliska argued in favor of regulation rather than prohibition. Despite the pushback, state officials maintain that the law is necessary to protect consumers, ensure fair play, and support the state’s licensed gambling industry.
Source: https://sbcamericas.com/2025/08/18/new-jersey-sweepstakes-ban-into-law/?amp
