Bill in New Jersey seeks to ban sweepstakes casinos

Following the ousting of sweepstakes social casinos in Mississippi in early February, other states are not exploring a similar path.

New Jersey becomes the latest state to seek a ban on sweepstakes

A general sense of antagonism against the sweepstakes sector has settled on the United States, with lawmakers up in arms against the model they have now become used to describing as "legal acrobatics" or outright "illegal."

A New Jersey bill now seeks to replicate this, echoing similar legal moves in New York and elsewhere. Assembly Bill 5447, sponsored by Rep. Clinton Calabrese, argues that platforms that use virtual currencies to allow players to win cash prizes ought to be banned outright.

The new draft law is hardly the only time that Rep. Calabrese has sought similar action against the sector. His previous effort, Assembly Bill 5196, sought to regulate the sector rather than ban it outright, but it seems the lawmaker’s patience has run out, and he is now pushing for a less liberal solution instead.

At the same time, Assembly Bill 5447 seeks to toughen existing laws and lead to stricter penalties for people who run unlicensed gambling websites and operations. The enforcement would be carried out by the Division of Consumer Affairs and the Division of Gaming Enforcement, rep. Calabrese explains in his latest bill.

Understandably, the bill has elicited a strong response from the sector, with sweepstakes social casinos on the defensive across the nation.

Sweepstake sector pushes back against growing animosity against it

The new wave of opposition stemming from traditional gaming companies has prompted the sector to rally and form a new organization, the Social and Promotional Games Association (SPGA), which has already issued strong criticism of Assembly Bill 5447.

"We urge lawmakers to reject Assembly Bill 5447 and instead pursue the balanced regulatory approach previously introduced to protect consumers while allowing innovation to flourish in New Jersey's dynamic gaming market," the SPGA said.

The American Gaming Association, a trade body representing the collective interests of the commercial gaming sector, has also criticized the sweepstakes sector, arguing that it presented players with a way to experience legal casino gambling, but the companies that offered these products did not, in fact, have a license – nor were they required by law to have it.

Yet, this is hardly the only development against the sector, with Sen. Joseph Addabbo in New York pitching his own anti-sweepstakes project in the state just recently.

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