Legislation Introduced in New Jersey Aims to Prohibit Sweepstakes-Style Casinos
Revamped Rant:
The Anti-Sweepstakes Wave: New Jersey Lays Down the (Virtual) Gauntlet
The choir of dissent towards sweepstakes casinos has grown louder in the United States. Savvy lawmakers are no longer putting up with the "legal acrobatics" or outright "illegality" associated with these platforms. Republican Representative Clinton Calabrese is spearheading the charge, with New Jersey's Assembly Bill 5447 now aiming to stamp out the sector.
In a stark departure from his previous efforts, Calabrese's new draft law seeks to ban platforms using virtual currencies for cash prize winnings. The bill echoes similar legal maneuvers in New York and elsewhere, marking a shift from the previous approach of regulation.
Assembly Bill 5447 isn't just tough on sweepstakes operators; it also proposes stricter punishments for those running unlicensed gambling websites and operations. The enforcement would be spearheaded by the Division of Consumer Affairs and the Division of Gaming Enforcement.
Not surprisingly, the anti-sweepstakes sentiment has sparked a backlash. Sweepstakes casinos are fighting back, forming the Social and Promotional Games Association (SPGA). The SPGA has already voiced their opposition to Assembly Bill 5447, urging lawmakers to pursue a more balanced regulatory approach instead.
Traditional gaming companies are joining the fray, with even the powerful American Gaming Association criticizing the sector. They argue that these virtual casinos offer a sneaky loophole for legal casino gambling, without the operators holding the necessary licenses - or facing consequences for this omission.
The action in New Jersey isn't an isolated case. New York's Senator Joseph Addabbo is also jumping on the anti-sweepstakes bandwagon, proposing legislation of his own in the Empire State.
Stay tuned for further developments in the sweeping (and sweeps-ing) saga of online gaming in the United States.
Image credit: Unsplash.com
Insights:- Assembly Bill 5447 was unanimously approved by the Assembly’s Tourism, Gaming, and the Arts Committee on May 9, 2025, and is now referred to the Assembly Consumer Affairs Committee for further consideration.- Previously, Assemblyman Calabrese introduced a different bill, A5196, which aimed to regulate sweepstakes casinos, but it was withdrawn in favor of A5447's prohibitive approach.
- The recent Anti-Sweepstakes sentiment, led by Assemblyman Clinton Calabrese's Assembly Bill 5447, has extended to the realm of politics, as it seeks to ban virtual currency-based gambling platforms and impose stricter punishments for unlicensed gambling operations.
- The escalating debate over sweepstakes casinos and their legality, fueled by Assembly Bill 5447, has spilled into the criminal justice system, with traditional gaming companies expressing concerns about the unregulated nature of these virtual casinos and the potential for exploitation in the general-news landscape.
