New Jersey representative files bill to ban sweepstakes in the state

A New Jersey Assembly Bill from Democratic Representative Clinton Calabrese has outlined a ban on sweepstakes operators, two months after he introduced a separate bill which proposed regulating the vertical.

AB 5,447, sponsored by Calabrese, seeks to ban sweepstakes as a model of wagering in the state while also creating penalties for “unlawful gambling operations”. Those penalties were not documented in the initial filing of the bill.

The bill proposes that the Division of Consumer Affairs and Division of Gaming Enforcement is responsible for enforcing punishment.

However, a full disclosure of the bill is not yet available via the New Jersey legislature. The only public information available is the initial blurb describing Calabrese’s efforts.

In January, AB 5,196 was introduced by Calabrese, calling on online sweepstake casinos to be regulated in New Jersey and classifying them as internet gaming operations.

The bill was referred to the New Jersey Assembly Tourism, Gaming, and Arts Committee, although no progress has been made beyond that point.

The bill reads: “An online sweepstakes casino may additionally offer tokens, coins, chips, credits, or other forms of currency for purchase or exchange that are directly redeemable for cash, prizes, or other things of value.”

AB 5,196 added that relevant authorities would be required to investigate sweepstakes operators without holding a license or meeting requirements laid out in New Jersey.

To obtain a license under Calabrese’s initial bill, a sweepstakes operator would be required to partner with a land-based casino, as has been the case for sports betting operators in the state since the fall of PASPA in 2018.

In February, Mississippi approved Senate Bill 2150 which would ban online sweepstakes. This led to trade body the Social and Promotional Gaming Association (SPGA) insisting its members operate within US laws.

If approved by the House of Representatives, SB 2,150 will come into effect from July 1, 2025, and Mississippi would be the first US state to ban the vertical.

That same month, Arizona warned its players that it would be unable to resolve complaints made against sweepstake operators.

The regulation of sweepstakes has been a hot issue in North America, with the SPGA launching in September as scrutiny on the vertical increased.

In January, the American Gaming Association called on regulators to observe sweepstake casinos, calling them a “prime opportunity for illegal activity.”

EGR North America contacted the SPGA for comment, with the trade body saying in a statement: “The Social and Promotional Games Association firmly opposes Assembly Bill 5447, a reckless attempt to ban sweepstakes in New Jersey.

“This shortsighted legislation abandons the state’s progressive stance on gaming, directly contradicting the regulatory framework championed by Assemblyman Clinton Calabrese earlier this year — one that would ensure oversight, licensing, and taxation, bringing sweepstakes in line with other regulated gaming entities.

“New Jersey has led the way in gaming regulation — not followed. With innovative licensing frameworks for digital entertainment, the state sets the standard. This smart, forward-thinking approach should continue, not be replaced by outdated prohibition.

“Our members take pride in driving innovation and providing safe, engaging digital entertainment to New Jersey consumers. As the regulatory landscape continues to evolve, we remain committed to working with policymakers to ensure that millions of American adults can continue enjoying their preferred gaming experiences within a properly regulated environment.

“We urge lawmakers to reject Assembly Bill 5447 and instead pursue the balanced regulatory approach previously introduced to protect consumers while allowing innovation to flourish in New Jersey’s dynamic gaming market.”