New Jersey lawmakers have reversed course on Bill A5196 and are now pushing to ban sweepstakes casinos altogether. The shift reflects rising concerns over consumer protection and the legal gray area of sweepstakes gaming.
In a stunning policy shift, New Jersey lawmakers have reversed course on plans to regulate online sweepstakes casinos and are now considering an outright ban. Just months after introducing Bill A5196, which would have integrated sweepstakes casinos into the state’s existing gambling framework, state officials now believe prohibition may be the only viable path forward.
Initially, Bill A5196 aimed to:
- Allow sweepstakes casinos to operate under regulated conditions.
- Require licensing, audits, and responsible gaming protections.
- Create a new tax revenue stream from this increasingly popular market.
However, after pushback from the New Jersey Division of Gaming Enforcement (DGE) and brick-and-mortar casino operators, lawmakers determined that the legal ambiguity of sweepstakes platforms made them too difficult to regulate effectively.
What’s Next?
If the ban passes, operating a sweepstakes casino targeting New Jersey residents could result in civil penalties, cease-and-desist orders, and blacklisting. It’s a sharp contrast to states like Texas or Florida, where such platforms remain largely tolerated.
Takeaway:
This marks a critical moment for the sweepstakes gambling model. New Jersey’s decision could inspire other states to either clamp down or clarify the legal boundaries of these platforms. For players and affiliates, this means closer monitoring of state-level legislation is more important than ever.
