New Jersey sweepstakes casino ban now rests with Gov. Phil Murphy

• Lawmakers in New Jersey have given their overwhelming support for banning sweepstakes casino operators
• The sector has drawn even fiercer criticism than prediction markets, which have been fighting back fairly successfully
• Now, it will be down to Gov. Phil Murphy to decide whether online sweepstakes casinos may continue operating

New Jersey is about to enact new legislation that would ban sweepstakes online casinos from the Garden State.

The debate has taken a long while, with A5447 finally landing on Gov. Phil Murphy’sdesk, who will have the right to enact it or send it back for reconsideration.

Lawmakers send bill banning sweepstakes casinos to governor’s desk

Legislature has already given a strong nod of approval on the matter, with the Senate passing the measure with a 34-5 vote, whereas the Assembly voted 69-10, mustering strong support for the issue.

Unlike prediction markets, sweepstakes casinos have been repeatedly targeted over their use of double currency that allowed players to ultimately cash out their winnings in some form, enabling players to experience "real money online casino gameplay" even if local laws did not allow it.

The sector has argued that nothing could be further from the truth, and drew parallels with the way Microsoft and McDonald's run sweepstakes contests. This argument has mostly failed to impress legislators, however, with the majority of lawmakers who have taken action on the issue voting against the sweepstakes sector.

The Social and Promotional Games Association (SGLA) has once again criticized the move and urged Gov. Murphy to exercise restraint and not sign the bill into law. The argument went on familiar lines.

SGLA urges governor to show restraint, acknowledge the bad that would come out of such a decision

By opting to ban sweepstakes in the Garden State, lawmakers were dooming the state to reduced technological innovation, talent outflow, and a lower tax base. The SGLA has repeatedly acknowledged the need to regulate the sector, but has opposed outright bans as counterproductive and feeding a false narrative.

"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," the SGLA said in a statement shared with Lineups, a publication.

As of the time of writing, Gov. Murphy has not made a formal decision. However, there is a high likelihood he will follow the legislature’s cue and sign the law.

Sweepstakes antagonistic legal moves have taken place all over the US, with other states at various stages of moving against the sector, among those Maine, Indiana, and Minnesota.

Image credit: Unsplash.com