Sweepstakes Casinos Flee New Jersey Amid Pending Bill

In New Jersey, a bill, Assmebly Bill 5447 passed which will effectively ban sweepstakes casinos. Now, the bill is awaiting a signature from Governor Phil Murphy. 

During this "purgatory" period, three sweepstakes casinos aren't wasting time; they're leaving the state already. 

These sweepstakes casinos include Club Casino, Clubs Poker, and LuckySlots.us. 

Governor Murphy has 45 days to sign or veto the bill. 

Emails Sent to Players

Clubs Casino and Clubs Poker are owned by the same company, KHK Games, Inc. 

KHK Games Inc. is based out of Philadelphia, Pennsylvania. 

In their email to NJ-based players, they mentioned that, starting July 2, they would be blocking “all new purchases and account registrations for users in New Jersey.”

They also mentioned that, if players are unable to use their Gold Coins before July 6 to contact customer support. Players must also complete all redemptions by that same day. 

“After July 6, your account will be deactivated, any remaining coins will expire, and we will begin geo-blocking all sessions originating from New Jersey,” the email said.

LuckySlots.us sent an email as well which reads as follows: 

“We want to inform you that we are exiting the New Jersey market and will no longer be offering our services in the state,” the LuckySlots.us email said. “As a result, your account will be closed within 2 days of this notice. If you currently have a balance, we kindly ask that you log in and request a redemption as soon as possible.”

LuckySlots.us is owned by Wyoming-based Sweet Innovation LLC. It also owns the Sweet Sweeps outlet, which is set to launch this summer. Of course, it won't be coming to New Jersey. 

It'll also not be available in Connecticut, Idaho, Louisiana, Michigan, Montana, Nevada, New York, Washington, and West Virginia. 

Other prominent sweepstakes casinos like Stake.us and High 5 Casino left the state quite some time ago. 

Interestingly, these sweepstakes casinos are owned by U.S.-based companies. 

Other States Banning and Getting Rid of Sweepstakes Casinos

New Jersey is the latest state to pass legislation to ban sweepstakes casinos.

Louisiana did pass legislation to ban them, but Governor Jeff Landry vetoed the bill on the premise that it was unnecessary and within the bounds of the Attorney General's office and Louisiana Gaming Control Board to go after them. 

As a result, sweepstakes casinos like Chanced have fled that state, too. 

Key Organization Lobbying Efforts All For Not

The Social Gaming Leadership Alliance and the Social and Promotional Games Association have released multiple statements regarding these bans and states going after sweeptakes casinos, but it's proven to be all for now. 

“Governor Murphy has an opportunity to do what the Legislature would not — listen to facts, not fear,” an SPGA spokesperson said in a press release. “This bill doesn’t just mischaracterize an entire industry, it ignores data, undermines innovation, and puts New Jersey’s reputation as a forward-thinking leader in tech and entertainment at risk... Even more concerning, this bill was driven by powerful casino lobbyists with a financial stake in eliminating lawful alternatives. That’s not consumer protection, that’s protectionism,” it added. 

The Executive Director of the SGLA, Jeff Duncan, also released a statement: “These proposals seek to eliminate a popular form of digital entertainment enjoyed by millions of Americans and based on a model used legally for decades by trusted consumer brands. This is not gambling — it’s marketing. Our partners operate free-to-play games with strong consumer protections and legally compliant promotional sweepstakes structures.”