New Jersey Legislature Passes Bill To Ban Sweepstakes Casinos
A bill to prohibit sweepstakes casinos in New Jersey passed through the state legislature Monday.
The bill, A5447, received a 34-5 vote from the NJ Senate and passed the Assembly 69-10 earlier in June. It now heads to Gov. Phil Murphy to sign into law.
NJ the sixth state to pass sweepstakes legislation
New Jersey is the sixth state to pass legislation banning sweepstakes casinos in 2025. Connecticut, Louisiana, Montana, Nevada and New York lawmakers also sent bills to their governors’ desks for signatures.
Louisiana Gov. Jeff Landry vetoed the bill, calling it unnecessary and saying the state already had procedures in place to shut down illegal gambling sites. The Louisiana Gaming Control Board sent more than 40 cease-and-desists following the veto.
New York Gov. Kathy Hochul has not signed the bill, two weeks since it passed the legislature on June 17. The bill will become effective immediately if and when she does.
NJ sweepstakes ban details
A5547 makes offering sweepstakes where users must pay or contribute an entry fee an act of unlawful gambling. The bill defines sweepstakes as any promotional, advertising, or marketing event, contest, or game where players can receive prizes or prize equivalents, directly or indirectly, through a dual-currency system.
The Division of Consumer Affairs will serve as the regulatory agency and will have the authority to conduct investigations and enforce penalties on sweepstakes operators. It can also issue cease-and-desist orders and escalate any cases involving noncompliant parties to the Superior Court.
Violations for sweepstakes operators result in a $100,000 fine for the first offense, and subsequent offenses can incur fines of up to $250,000. Each day of unlawful operation constitutes a separate offense.
SPGA releases statement
The Social and Promotional Games Association, which represents 11 major sweepstakes casino operators, released a statement following A5547’s passage, urging Gov. Murphy to veto what it called “a sweeping and ill-conceived ban…that has been rushed through the legislature to appease entrenched casino interests.”
New Jersey has the third-largest retail casino industry in the US, based on gross gaming revenue, and was the second state to legalize gambling in Atlantic City in 1976. It was also the second state to legalize online casinos in 2013 and has the third-largest iGaming industry in the US.
“Governor Murphy has an opportunity to do what the Legislature would not—listen to facts, not fear,” said a spokesperson for the SPGA. “This bill doesn’t just mischaracterize an entire industry, it ignores data, undermines innovation, and puts New Jersey’s reputation as a forward-thinking leader in tech and entertainment at risk.”
The SPGA has also recently spoken out against legislative efforts in California, Connecticut, Louisiana, Maine and New York.
More trouble for sweepstakes casinos nationwide
California could become the next state to ban sweepstakes casinos, following a bill that Assemblymember Avelino Valencia introduced in June. The bill has support from the state’s tribes, which have exclusive rights to casino gambling in California.
Other states, including Arkansas, Florida, Maryland and Mississippi, also introduced anti-sweepstakes legislation in 2025. A growing issue, those states and more will likely discuss banning sweepstakes casinos in 2026.
Arizona, Louisiana, Michigan and Mississippi have all targeted sweepstakes casino operators via cease-and-desist orders in recent months.
