New Jersey Anti-Sweepstakes Bill Signed, Effective Immediately

After weeks of waiting for the official signing, on Friday, Aug. 15, New Jersey Governor Phil Murphy signed Assembly Bill 5447 into law, outlawing sweepstakes casinos. 

“Lawmakers in New Jersey have completely ignored their own constituents and enacted a ban that voters oppose,” said Jeff Duncan, executive director of the Social Gaming Leadership Alliance, in a press release. “This law is a textbook example of government overreach that strips away entertainment choices from adults who should be free to make decisions about their own entertainment.” 

This law becomes effective immediately; there's no wait until 2026. 

Thus, effective Aug. 15, 2025, sweepstakes casinos are illegal in New Jersey. 

Looking Back at the Bill

Assembly Bill 5447 took aim at the language surrounding what "prize or prize equivalent" means in gambling vernacular. 

The definition now includes, “a virtual facsimile thereof, that can be exchanged, sold, or redeemed, either directly or indirectly through means such as a third-party marketplace, external service, or cash-out function.”

This is taking aim at Sweeps Coins, which are one of two currencies you can earn at sweepstakes casinos, along with Gold Coins. 

Gold Coins are used "for fun" and cannot be redeemed, whereas Sweeps Coins can be earned and redeemed for either cash prizes or gift cards. 

Before this bill was signed into law, pro-sweepstakes casino advocates argued that it would affect sweepstakes contests related to Hilton or Marriott. 

“New Jersey lawmakers have chosen to eliminate jobs, destroy innovation, and take away games that adults play responsibly and enjoy,” Duncan, a former South Carolina congressman, added. “This isn’t about consumer protection – it’s about using political influence to help established gambling interests eliminate perceived competition even though our products are fundamentally different. 

“Online social games use the same promotional structures as countless American businesses, yet New Jersey has decided to prohibit digital game providers from using well established marketing tools while protecting legacy casino operators.” 

However, lawmakers in New Jersey disagreed with this assertion. 

The Exodus Began Weeks Ago

While you may think that the instant banning of them might be a shock to sweepstakes operators, it's really not. 

Over the past weeks, almost every sweepstakes casino has left the state. 

Virtual Gaming Worlds, the operator behind LuckyLand Slots, Global Poker, and Chumba Casino, ended the sweepstakes portion of the platform. Sites like Funzpoints and Spree did complete shutdowns. Other platforms, such as Clubs Casino, Clubs Poker, LuckySlots.us, RealPrize, Zula Casino, and MyPrize.us, have also left. 

Examining the Current Sweepstakes Casino Legal Landscape?

Looking over the sweepstakes casinos landscape, three states have laws on the books now, following a governor's signature banning sweepstakes casinos. This list includes Connecticut, Montana, and now, New Jersey. 

The next state that'll likely be added is New York. A bill passed in June related to banning them, but like New Jersey, it hasn't been signed into law. According to Sen. Joseph Addabbo, Governor Kathy Hochul has until the end of the year to sign it. 

In conjunction with that bill, Attorney General Letitia James sent out nearly 30 cease-and-desist letters to sweepstakes operators in the state. 

There's also a bill in California, Assembly Bill 831, which will be heard before its final Senate committee on Aug. 18. 

Finally, Ohio has a bill, but it appears to be on life support as Governor Mike DeWine doesn't like a provision that'll legalize real-money online casinos.