New Jersey Proposes Sweepstakes Casino Ban Months After Attempt to Legalize

A New Jersey legislator wants to place a comprehensive ban on sweepstakes casinos.

Assembly Bill 5447, sponsored by Rep. Clinton Calabrese (D-36), would prohibit sweepstakes casino operators inside the New Jersey border. This is a complete reversal in direction as Calabrese just two months ago submitted a piece of legislation that would have legalized New Jersey sweepstakes casinos.

Sweepstakes casinos have gained recent popularity as they allow customers to play for prizes instead of going dollar-for-dollar as traditional casino gamers do when they take on the house.

Changing direction

Calabrese’s new bill would place an outright ban in one of the most gaming-friendly markets in the country. New Jersey generated $6.3 billion in revenue in 2024 and was one of the first states to launch legal sports betting just after a federal court overturned a longstanding decision that banned the practice.

“[AB 5447] Prohibits sweepstakes model of wagering; establishes new penalties for unlawful gambling operations and practices; directs Division of Consumer Affairs and Division of Gaming Enforcement to enforce penalties.”

Players gamble at sweepstakes casinos by using token-like currency received during sign-up or through additional purchases. These tokens can be used to win prizes including the token-like currency, which can then be exchanged for real money.

Calabrese’s January bill proposal, AB 5196 would have classified sweepstakes casinos as a form of iGaming, requiring sweepstakes casino operators to receive licensing before becoming eligible to operate in The Garden State.

The bill also would have required operators to partner with land-based New Jersey casinos.

Backlash and general sentiment 

The Social and Promotional Games Association, which supports social and sweepstakes casinos and their responsibility efforts, had harsh words for the bill.

“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,” the statement read.

“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.”

New Jersey is not the only state considering legislation for sweepstakes casinos. Similar bills are also being discussed in Connecticut, Maryland, Mississippi, and New York. 

The state’s cache as a leader in all forms of gaming will surely be a point of consideration for regulators in other jurisdictions depending on the route that New Jersey regulators choose to follow.