The New Jersey State Legislature passed legislation in June 2025 prohibiting online sweepstakes casinos from operating in the state. The sweeps gaming ban was signed into law on Aug. 15, 2025 by Gov. Phil Murphy, leading all remaining sweepstakes operators to exit the state.
But a new bill introduced in the New Jersey Senate on Jan. 13 could re-open the door, marking one of the clearest legislative attempts in the United States to fold sweepstakes casinos into regulated iGaming.
Senate Bill S1500 seeks to designate sweepstakes casinos as internet gaming and require licensure, regulatory oversight, and taxation within the state’s internet gaming framework. Under the bill, New Jersey would treat online sweepstakes casino platforms the same as standard online casinos approved by the state.
Bill would level playing field for all operators
Sponsored by Sen. Joseph P. Cryan, S1500 was introduced in the Senate on Jan. 13 and referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee. The bill is identical to bills introduced in the Senate and General Assembly during the 2025 session. Both of those bills stalled in committee as lawmakers focused on passing the sweepstakes gaming ban.
Cryan has yet to publicly comment on S1500, but in 2025, Assemblyman Clinton Calabrese, who sponsored the Assembly bill, told Gaming Today that prior to the sweepstakes prohibition bill passing that the legislation would provide operators with a clearer regulatory path to operate in the state.
“Sweepstakes casinos have operated in a regulatory gray area, which has led to significant challenges, including consumer protection concerns, underage gambling, and economic losses for the state,” Calabrese said at the time. “This bill aims to establish clear regulatory requirements and create a level playing field for all operators, ensuring that sweepstakes casinos meet the same standards as other forms of internet gaming in New Jersey.”
Requirements from sweeps would be the same as real-money iGaming
If passed, Senate Bill S1500 would require sweepstakes casinos to apply for licensure through the New Jersey Division of Gaming Enforcement (DGE), which would evaluate applications, conduct investigations, and make recommendations. The final licensing decisions would be made by the New Jersey Casino Control Commission. Once launched, the DGE would be the primary governing body in charge of oversight, including conducting audits, compliance monitoring, and enforcement actions.
Sweepstakes gaming platforms would be subject to the same legal requirements and standards as all other internet gaming operators in the state. Along with the same licensing and permit fees, sweeps operators’ revenue would be taxed by the state. Under current New Jersey law, the internet gaming tax rate for online casinos, DFS platforms and sportsbooks is 19.75% of gross revenue.
In order to operate a sweepstakes casino in New Jersey, after licensure, a platform would be required to partner with a brick-and-mortar Atlantic City casino licensee.
S1500 would subject sweepstakes casinos to New Jersey’s full suite of consumer protections for internet gaming, including:
- Age minimums: Only those 21 or older could use the platforms
- Mandatory age and identity verification: Operators must use age- and identity-verification tools.
- Responsible gaming controls: Internet gaming permit holders must comply with New Jersey’s responsible gambling standards, which include providing tools to prevent harmful play and allowing for self-exclusion.
NJ bill aligns with sweeps trade group goals
The goals of S1500 appear to align with the mission of the Social Gaming Leadership Alliance (SGLA), the leading industry trade group that includes partners like VGW, B‑Two Operations, and ARB Interactive.
As legislation in various states to ban sweeps gaming operations moves forward, the SGLA has been lobbying lawmakers and the public to instead support licensing, regulating, and taxing the platforms, citing the benefits of tax revenues and uniformly providing a safe gaming experience for players.
Sweepsy reached out to the SGLA for comment on S1500 specifically, but did not receive a response by the time of publication. But in response to New Jersey’s sweeps prohibition implemented last year, the organization put out a news release condemning the law as “draconian” and an example of government overreach.
“We hope lawmakers in other states will learn from New Jersey’s overreach and choose sensible regulations that benefit players, communities, and state budgets by creating a safe, taxed, and transparent industry rather than imposing broad restrictions that stifle legitimate business operations,” SGLA Executive Director Jeff Duncan said in the release.
