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What Online Casino Options Are Available Following NJ Sweepstakes Ban
By Drew Ellis
Published:
Sweepstakes casinos are a hot topic around the country right now, but New Jersey is one of the few states to take a hard legal stance against them.
In mid-August, New Jersey Gov. Phil Murphy signed A5447 and S4282 into law. That officially put into place a ban of dual-currency sweepstakes while also setting fines and penalties for anyone engaging in such business. The bills also criminalized proxy betting in New Jersey.
Both bills were approved by the state Assembly and Senate in June prior to advancing to Murphy’s desk. They went into effect on Aug. 15.
These laws created plenty of debate in the state, with NJ online casino operators and regulators happy with the move. Conversely, casual online gamers aren’t pleased with the NJ sweepstakes ban and the loss of a gaming option. But, there are still a lot of available online casino options for those needing a replacement for sweepstakes.
What the NJ Sweepstakes Ban Means
The enacted legislation defines sweepstakes as, “promotional, advertising, or marketing event, contest, or game, whether played online or in-person, in which something of value, such as a prize or prize equivalent, is awarded, either directly or indirectly through means such as a dual currency system of payment that allows a participant to exchange the currency for a prize or prize equivalent.”
A first offense for violation of the law will generate a $100,000 fine. Every subsequent offense will result in a fine of $250,000.
Operators that ignore a cease-and-desist order from regulators will receive a $25,000 fine for each violation.
New Jersey became the third state in 2025 to put a legal ban of sweepstakes casinos in place. They followed Connecticut, and Montana. Idaho and Washington also have existing legislation to prohibit the gaming form.
Michigan and Delaware also have had state regulators enact policies to ban sweepstakes casinos, while five other states have current legislation being discussed to create their own bans.
SGLA Comes Out Strongly Against NJ Ban
Understandably, the Social Gaming Leadership Alliance (SGLA) has come out vocally against this new legislation.
“Lawmakers in New Jersey have completely ignored their own constituents and enacted a ban that voters oppose,” Jeff Duncan, SGLA Executive Director and former Congressman, said in a statement. “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.”
“New Jersey lawmakers have chosen to eliminate jobs, destroy innovation, and take away games that adults play responsibly and enjoy,” Duncan 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.”
The alliance was very strong in its opinions on the matter. The growing legal influence of action against sweepstakes casinos has to be a concern. It also doesn’t appear to be going away any time soon.
Best Alternatives to Sweepstakes Casinos in NJ
The NJ sweepstakes ban certainly has had an impact on those who regularly used the various platforms.
Good thing for iGamers is that there are still plenty of legal options available in the state.
- No Deposit Casinos: There are available online options of casinos with no deposit bonuses. These offers allow uses to play with bonus money or free spins without committing any payment of their own.
- Demo Mode: Many online casinos in New Jersey offer their games in a demo mode. This allows a user to play the game with a fake bankroll and see what it has to offer without any risk of losing their own finances.
- Available Sweepstakes: The laws do allow for companies to host sweepstakes games where participants receive entry through the purchase of food or non-alcoholic beverages.
- Online Casinos: New Jersey has the most expansive online casino options of any state in the US. Currently with 28 different options, each casino offers their own bonuses, offers, and loyalty programs to consider.
Drew Ellis has experience covering the gambling industries in North America and around the world. Decades of media experience provide him with the background to handle the complexities of different gambling laws and policies around the United States and North America. Ellis has primarily focused on online and retail casino news since 2021. Prior to working in the gambling industry, Ellis spent over 20 years in the newspaper industry, covering sports and the gambling. His work for The Mt. Pleasant Morning Sun and The Oakland Press was recognized with awards by the Associated Press and other media organizations. Drew has also contributed to the Detroit Free Press and the Associated Press.