Casino ban in New Jersey, effective August 14, as Governor remains unresponsive
The ban on sweepstakes casinos in New Jersey is officially in effect as of August 15, 2025, following the signing of Assembly Bill 5447 by Governor Phil Murphy. This law prohibits sweepstakes casinos using dual-currency systems from operating in the state.
Several sweepstakes casino platforms, including Club Casino, Clubs Poker, and LuckySlots.us, began leaving New Jersey in anticipation of the law. Major platforms operated by VGW such as Chumba Casino, LuckyLand Slots, and Global Poker have also exited the New Jersey market due to the imminent regulatory ban. Similar exits are expected from Pulsz, McLuck, and other major sweeps brands before the Aug. 14 deadline.
The legislation, passed by both chambers of the New Jersey Legislature on June 30, went into effect after Governor Murphy took no veto action within the 45-day window. Violators of the ban face penalties up to $100,000 for a first offense and $250,000 for repeat violations.
Compliance with the ban would require operators to strip away core revenue drivers: virtual currency purchases, prize redemptions, and casino-style gameplay. Most operators see little business incentive to remain under the new framework. 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.
Assemblyman Clinton Calabrese, who sponsored the bill, had previously introduced legislation that would have regulated and legalized sweepstakes casinos in New Jersey, but later reversed his position and supported the ban. The law stops short of banning all sweepstakes entirely, but paid casino-style games with real cash prizes will be off the table.
Enforcement of the ban will be handled jointly by the New Jersey Division of Gaming Enforcement (DGE) and the Division of Consumer Affairs. History has shown that companies that adapt quickly and creatively stand the best chance of survival in regulatory battles. The change will mark the end of easy access to sweepstakes casinos offering cash-out winnings for New Jersey players.
This confirms that sweepstakes casinos are no longer legally allowed to operate or onboard new players in New Jersey, reflecting a growing trend of regulatory scrutiny on this form of online gaming. The ban on most sweepstakes casinos in New Jersey will take effect on Aug. 14, and Murphy has taken no action, all but ensuring the measure will take effect. The era of unchecked growth in the sweepstakes casino industry may be coming to a close.
- Due to the ban on sweepstakes casinos in New Jersey, political discussions surrounding the regulation of online gambling are escalating, with the abolition of these casinos being seen as a sign of increasing regulatory scrutiny.
- In the wake of the ban on sweepstakes casinos in August 2025, online gambling platforms operating under general-news and politics sections are expected to cover the implications and potential future of these casinos in the post-ban era.
