New Jersey has become the latest state to completely ban sweepstakes casino operations after Governor Phil Murphy signed Assembly Bill A5447 into law on Friday, August 16, 2025. The legislation takes effect immediately, making New Jersey the sixth state in 2025 to enact sweepstakes casino restrictions.
Immediate Implementation and Enforcement Powers
The newly signed law prohibits all dual-currency sweepstakes gaming operations within New Jersey’s borders. The ban targets online sweepstakes that offer dual-currency systems, effectively shutting down platforms like Chumba Casino, LuckyLand Slots, and similar operators that have been serving New Jersey residents.
Unlike some state approaches that rely on existing gaming laws, New Jersey’s legislation creates specific enforcement mechanisms designed to quickly shut down non-compliant operations. The law gives regulators, including the Division of Gaming Enforcement, the authority to seek injunctive relief against illegal operators.
Significant Financial Penalties
New Jersey has implemented some of the steepest penalties for sweepstakes violations in the country. First-time violations result in fines of up to $100,000, while repeat offenders face penalties of up to $250,000. The law treats each day of unlawful operation as a separate offense, meaning penalties can accumulate rapidly for operators who continue serving New Jersey customers.
Additionally, for each cease-and-desist order ignored by an operator, regulators can assess a $25,000 fine for each violation. This creates a powerful enforcement mechanism that doesn’t require lengthy court proceedings to impose substantial financial consequences.
Beyond Sweepstakes: Broader Gaming Reforms
A5447 addresses more than just sweepstakes casinos. The measure also bans bearding, preventing bettors from using another person’s gaming account to place wagers, and prohibits the sharing of insider information used to place wagers. These provisions strengthen New Jersey’s existing legal gaming market by closing regulatory loopholes that could undermine licensed operations.
Legislative Timeline and Industry Response
The bill moved swiftly through New Jersey’s legislature, passing both chambers on June 30, 2025, before sitting on Governor Murphy’s desk for nearly seven weeks. The measure had been awaiting Murphy’s signature since June 30, leading to speculation about potential industry lobbying efforts during the delay.
The Social and Promotional Games Association, which represents major sweepstakes operators, had opposed the legislation, arguing that sweepstakes platforms provide entertainment value distinct from traditional gambling. However, New Jersey lawmakers ultimately concluded that the dual-currency model too closely resembled prohibited gambling activities.
National Context: Part of Broader Regulatory Wave
New Jersey becomes the fourth state to actually criminalize sweeps casinos, following Connecticut, Nevada, and Montana, with several other states taking regulatory action through different mechanisms. The coordinated timing suggests states are sharing information and strategies for addressing sweepstakes operations.
New Jersey’s approach is particularly significant because the state operates one of the most successful legal online gaming markets in the country. The decision to ban sweepstakes platforms while maintaining robust legal iGaming and sports betting options sends a clear message about regulatory priorities and market protection.
Impact on Operators and Players
Major sweepstakes operators had already begun preparing for New Jersey’s exit, with some platforms like Chumba Casino proactively restricting New Jersey access in anticipation of the ban. The immediate implementation means any operators still serving New Jersey customers face immediate legal exposure.
For players, the ban means losing access to sweepstakes platforms they may have used regularly. However, New Jersey residents retain access to the state’s extensive legal online casino and sports betting options, which offer similar gaming experiences with stronger consumer protections.
Enforcement Strategy and Future Monitoring
New Jersey’s Division of Gaming Enforcement has not yet detailed its specific enforcement approach, but the law’s structure suggests a focus on rapid identification and shutdown of non-compliant operations. The ability to seek immediate injunctive relief means the state can likely block operator payments and freeze accounts without lengthy legal proceedings.
The law’s daily penalty structure creates strong incentives for immediate compliance, as operators who attempt to continue serving New Jersey customers face escalating financial consequences that could quickly reach millions of dollars.
Looking Forward: Model for Other States
New Jersey’s comprehensive approach to sweepstakes regulation may serve as a model for other states considering similar legislation. The combination of immediate implementation, substantial penalties, and broad enforcement authority creates a framework that other jurisdictions can adapt to their specific legal environments.
With New York moving closer to an outright sweeps ban and California’s AB 831 advancing through the legislature, the regulatory momentum against sweepstakes casinos shows no signs of slowing. New Jersey’s successful implementation could accelerate similar efforts in other major markets.
The law represents a clear victory for advocates of regulated, licensed online gaming and a significant setback for the sweepstakes casino industry’s expansion into major US markets.