New Jersey Enacts Law Banning Sweepstakes Casinos: Key Details

New Jersey Assembly Bill A5447, which bans sweepstakes casinos across the state, has officially been enacted into law after passing both chambers of the state legislature and receiving executive approval.

The measure cleared the General Assembly in a 69-10 vote on June 30, 2026, before passing the Senate by a 34-5 margin on July 27, 2026. Following its legislative passage, Gov. Phil Murphy signed the measure into law on Aug. 3, 2026, as P.L. 2026, c. 128.

Key provisions and penalties under Bill A5447

Under the legislation, sweepstakes casinos are prohibited whenever participants must pay or provide an entry fee to play. The law defines sweepstakes as any advertisement, promotion, event, marketing effort, or game allowing players to win prizes or rewards through a dual-currency system.

The state considers such dual-currency models (usually with Gold Coins and Sweepstakes Coins) illegal gambling operations. The Division of Consumer Affairs and the Division of Gaming Enforcement hold regulatory oversight to investigate and penalize violations. Operators in violation face a $100,000 fine for a first offense.

According to reporting from WRAT, platforms that continue illegal operations face fines of up to $250,000 for each subsequent violation. State law treats continued operation as a separate offense for each day a platform remains active.

Industry opposition and response from sweepstakes operators

Before the bill became law, major sweepstakes operators mounted a public campaign urging a veto. Eleven major operators formed a coalition through the Social and Promotional Games Association, now the Social Gaming Leadership Alliance (SGLA), to oppose the ban.

A spokesperson for the coalition described the legislation as a broad, ill-considered ban rushed through the legislature to satisfy established casino interests. The coalition argued that NJ Bill A5447 misrepresents the sweepstakes industry, ignores economic data, restricts technical innovation, and threatens New Jersey’s reputation as a leader in technology and entertainment.

Despite these pushback efforts from the industry, state lawmakers and executive leadership moved forward with the prohibition.

Nationwide landscape and New Jersey’s gaming history

New Jersey’s action aligns with a broader national trend of state restrictions on sweepstakes platforms. Several other states—including Louisiana, Maine, Connecticut, Indiana, Nevada, Montana, and New York—have enacted similar prohibitions targeting sweepstakes casinos.

In Oklahoma, lawmakers passed a sweepstakes ban under Senate Bill 1589, overriding a gubernatorial veto to enact the prohibition.

New Jersey has long maintained a regulated approach to commercial gambling. Voters approved casino gaming in Atlantic City in 1976, making New Jersey the second US state to legalize commercial casinos. In 2013, the state became the second to permit online casinos in NJ, building one of the nation’s largest gaming markets by gross revenue.

The sweepstakes ban reflects ongoing state-level efforts to protect traditional gaming revenues. Full details on the statutory framework and enforcement guidelines are published directly by the New Jersey Legislature.