Casino ban enactment in New Jersey, scheduled for August 14th, amid Governor's conspicuous silence on the matter
New Jersey has officially banned sweepstakes casinos, effective August 14, 2025. This decision comes after the state's legislature passed the relevant bill (A5447/S4282) and Governor Phil Murphy did not veto it within the 45-day period [3].
The ban targets sweepstakes casinos that use virtual currencies to simulate gambling, a model previously used to circumvent traditional gambling laws [2]. Platforms like Stake.us and VGW, which operates Chumba Casino and LuckyLand Slots, have already ceased operations in New Jersey in anticipation of the ban [1][5].
Under the new law, paid casino-style games with real cash prizes will be prohibited. Operators who continue to offer such games risk regulatory penalties and reputational damage. Compliance with the ban would require operators to strip away core revenue drivers such as virtual currency purchases, prize redemptions, and casino-style gameplay [2].
Once the ban takes effect, remaining operators will have three main options: exit the market, pivot to low-value prize promotions, or develop alternative formats like skill-based games or DFS-style competitions [4]. It is expected that other major sweepstakes brands, such as Pulsz and McLuck, will follow suit before Aug. 14 [6].
The bill, sponsored by Assemblyman Clinton Calabrese, defines a prohibited sweepstakes casino. Assemblyman Calabrese, who initially introduced legislation to regulate and legalize sweepstakes casinos, later reversed his position and supported the ban [1].
This ban is part of a broader crackdown on sweepstakes casinos across several states due to concerns over unregulated and potentially unconstitutional gambling practices [1][4]. Enforcement of the ban will be handled jointly by the New Jersey Division of Gaming Enforcement (DGE) and the Division of Consumer Affairs.
In conclusion, as of August 14, 2025, sweepstakes casinos are no longer allowed to operate or sign up players in New Jersey. Affected platforms include Stake.us, VGW, and other operators who must comply with the ban and no longer accept New Jersey players [1][2][5].
Online casinos face a new restriction as New Jersey bans sweepstakes casinos, specifically those that use virtual currencies to simulate gambling, effective August 14, 2025. This political decision comes after the state's legislature passed bill A5447/S4282, and general-news reports suggest that other sweepstakes brands, such as Pulsz and McLuck, may also leave the New Jersey market in response.
