New Jersey legislators fast-track ban on sweepstakes casinos, send bill to Governor’s desk

New Jersey legislators moved swiftly this week to approve a sweeping ban on online sweepstakes casino operations, joining a growing list of states cracking down on the controversial gaming model.

The Assembly first passed the bill, A5547, by a 69-10-1 vote before the Senate cleared it 34-5 in a rapid session Monday that left little room for debate as lawmakers raced to meet a July 1 budget deadline. The legislation now heads to Governor Phil Murphy for signature. If signed by Murphy, New Jersey’s ban would take effect immediately.

The measure marks New Jersey as the sixth state where legislatures have passed laws aimed at curbing sweepstakes casinos. Similar bills have already become law in Connecticut and Montana, while governors in Nevada and New York are still weighing legislation on their desks. In Louisiana, Governor Jeff Landry vetoed a comparable measure in June, saying existing powers already gave regulators the tools they needed.

New Jersey’s bill targets online platforms that use a dual-currency system, a hallmark of the sweepstakes model, but carves out exceptions to protect traditional contests run by fast-food chains and other consumer brands.

Enforcement responsibilities will fall to the state’s Division of Consumer Affairs and Division of Gaming Enforcement. The law also criminalizes promoting sweepstakes gambling, potentially affecting affiliates and influencers who market such platforms.

The legislation also extends beyond sweepstakes to tighten penalties around sports wagering misconduct. New provisions address insider betting and introduce felony charges for “bearding,” where someone places bets using another person’s account to avoid detection. Under the bill, bettors who use bearding schemes to secure more than $75,000 could face second-degree criminal charges.

The Social and Promotional Games Association (SPGA) issued a statement urging Governor Murphy to reject the bill, describing it as a rushed attempt to “appease entrenched casino interests.”

The group warned that the law could have unintended consequences for a broader array of promotional platforms, including those operated by companies like Marriott and Microsoft. “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,” a spokesperson said.

The World Poker Tour also tried to intervene in the final days before the vote. During a Senate Budget and Appropriations Committee hearing last week, WPT President and CEO Adam Pliska flew in overnight to make an in-person plea to preserve the company’s sweepstakes products, ClubWPT and the newer ClubWPT Gold. Pliska emphasized that WPT has operated sweepstakes models for more than 15 years without lawsuits or cease-and-desist orders.

He argued that New Jersey could instead benefit by taxing sweepstakes coin purchases, as some other states do, and noted the impact of WPT’s televised events, which he said drive traffic to land-based casinos like Borgata in Atlantic City.

ClubWPT Gold only launched in early 2025, bringing a model similar to Global Poker’s dual-currency system to 45 states, including New Jersey. Pliska stressed that the WPT offering is exclusively focused on poker, unlike sweepstakes casinos that typically include a broader slate of slot-style games.

New Jersey’s move follows a wave of enforcement actions across the U.S. Regulators in Michigan, Mississippi, Arizona, and Louisiana have each sent cease-and-desist notices to sweepstakes operators in recent months, while California lawmakers are considering a prohibition bill backed by tribal gaming interests. California Attorney General Rob Bonta is also expected to take new action on daily fantasy contests.