The Assembly’s Tourism, Gaming, and the Arts Committee voted unanimously in favor of bill A5447. Assemblymen Clinton Calabrese and Sterley Stanley introduced the bill in March, aiming to stop the spread of sweepstakes casinos in the state.
New Jersey Bill Against Sweepstakes Takes Step Forward New Jersey sweepstakes casinos bill closer to approvalor sports wagering” to the bill’s definition of what it is prohibiting.The bill will now move to the Assembly Consumer Affairs Committee. The New Jersey legislative session runs until the end of the year, giving plenty of time for the bill to make it through all the stages to legal approval.
Sweepstakes casinos exploring legal loophole
Calabrese, one of the bill’s sponsors, commented that “companies have been exploiting a certain loophole” to run sweepstakes casinos. Stephan Finkel, the director of legislative affairs for the Attorney General’s office, added that sweepstakes have not been approved by voters in New Jersey. State law requires any gambling to be voted for in a referendum. As such, this form of gambling is unconstitutional, he argued.
Finkel went on to stress the importance of getting the terminology right to crack down on the current loophole. He added, “The legislature can be very clear in saying, ‘this is what isn’t allowed in our gambling laws.’”
The Sports Betting Alliance (SBA) also added its support to the move against its rivals. A representative for the SBA, Eric Scheffler, commented that the sweeps model is “a legal maneuver that allows them to replicate the experience of online casinos while avoiding the licensing and regulation and taxation structure set up by the state policymakers across the country.”
SBA members, which include DraftKings, BetMGM, and FanDuel, are keen to protect their revenue streams from legal casino gaming.
New Jersey casino gaming
New Jersey online casinos have been legal since 2013, and in this time, licensed operators have contributed $1.78 billion in tax revenue. Last year saw a record-breaking $2.39 billion in revenue, marking a 24.1% increase from the $1.92 billion reported in 2023.
New Jersey Bill Against Sweepstakes Takes Step Forward New Jersey sweepstakes casinos bill closer to approvalThis legislation aims to clamp down on the growing market while protecting the state’s legal industry.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
