New Jersey Takes Action Against Sweepstakes Social Casinos

After the removal of sweepstakes social casinos in Mississippi earlier this February, other states are not considering a similar course of action.

New Jersey Steps Up in the Movement Against Sweepstakes Casinos

The United States has been engulfed by a wave of opposition against the sweepstakes industry, with legislators vocally criticizing the model as ‘legal acrobatics’ or downright ‘illegal.’

In a recent legislative push, New Jersey has introduced a bill that mirrors legal pursuits in other states like New York. Assembly Bill 5447, introduced by Representative Clinton Calabrese, aims to prohibit platforms that utilize virtual currencies to award cash prizes.

This is not Rep. Calabrese’s first attempt to address the issue. His previous proposal, Assembly Bill 5196, aimed to regulate the sector instead of banning it. However, his current stance reflects a shift towards a stricter approach.

Furthermore, Assembly Bill 5447 intends to fortify existing laws, imposing harsher consequences on those operating unlicensed gambling sites. The enforcement of these measures is to be overseen by the Division of Consumer Affairs and the Division of Gaming Enforcement, as detailed by Rep. Calabrese in his new proposal.

Predictably, the bill has triggered a robust reaction from the sweepstakes social casino industry, which finds itself on the defensive nationwide.

Sweepstakes Industry Responds to Mounting Criticism

The surge of opposition from traditional gaming entities has galvanized the sweepstakes sector to unite and establish a new entity known as the Social and Promotional Games Association (SPGA). This organization has already voiced strong objections to Assembly Bill 5447.

“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,” the SPGA stated.

The American Gaming Association, representing the interests of the commercial gaming industry, has also voiced disapproval of the sweepstakes model. They argue that while it offers players a semblance of legal casino gambling, the companies providing these services are neither licensed nor legally obligated to be.

This trend is not isolated to New Jersey. In New York, Senator Joseph Addabbo has recently proposed his own initiative to curb sweepstakes casinos in the state.