Facing a July 1 budget deadline, New Jersey lawmakers wasted little time getting a bill to prohibit online sweepstakes casinos through both the Assembly and the Senate on Monday.
Minutes after the Assembly approved A5447 by a sweeping 69-10-1 vote, the Senate approved the measure by a 34-5 count. The bill now heads to the desk of Gov. Phil Murphy for his signature to officially be enacted into law.
As a result, New Jersey became the sixth state to pass legislation to ban sweeps operators
More info on bill prohibiting online sweeps casinos
As written, A5447 puts into the crosshairs any form of online gambling with a dual-currency system while also including language that still allows for other companies – such as fast-food restaurants and hotel groups – to continue to run promotional contests.
The Department of Consumer Protection as well as the New Jersey Division of Gaming Enforcement will be tasked with enforcing the new laws, which also criminalize the promotion of sweepstakes operators in the Garden State such as affiliate companies.
Once Murphy puts pen to paper on A5447, the ban will immediately go into effect.
Bill also includes provisions relating to NJ sports betting
While sweepstakes casinos garner the spotlight with the bill’s passage, A5447 also targets “any game that mimics or simulates … sports wagering.”
What’s more, the bill also increases punishments for anyone who has a role in attempting to rig a sporting event. The weight of the punishment – a second-, third- or fourth-degree violation – will coincide with how large of a bribe a person accepts in order to fix the event.
On top of that, language within the bill criminalizes “swindling,” which entails purposefully or knowingly placing a bet while possessing information that is not available to the general public. A person is guilty of the act, too, if they purposefully use another person’s account for placing wagers “with the purpose to deceive.”
Should a bettor violate this section of the law and generate a profit exceeding $75,000, it will be considered a felony.
NJ becomes 6th state to pass legislation banning sweeps
With the bill awaiting Murphy’s signature, New Jersey becomes the sixth state to see the legislature pass a bill to ban sweepstakes casinos.
Montana set the standard by becoming the first state to do so, followed a few weeks later by Connecticut. Both Nevada and New York have advanced legislation and await governor signatures.
Louisiana was on the cusp of joining Montana and Connecticut, but Gov. Jeff Landry ultimately vetoed the bill, saying that online sweeps casinos “are already prohibited” in the Pelican State.
SPGA responds to passage of A5447
After New Jersey legislators sent A5447 to Murphy’s desk, the Social and Promotional Games Association (SPGA) released a statement that “strongly urges” the governor to veto the bill, which the group called “a sweeping and ill-conceived ban on promotional sweepstakes-style gaming that has been rushed through the legislature to appease entrenched casino interests.”
“Governor Murphy has an opportunity to do what the Legislature would not – listen to facts, not fear,” a spokesperson for the SPGA said in a statement.
“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 SPGA said that A5447 represents “a direct contradiction to the sensible regulatory framework” of a bill introduced by Assemb. Clinton Calabrese, who introduced that bill in January. Calabrese, though, ultimately heel-turned and sponsored A5447.
“Even more concerning,” the SPGA added, “this bill was driven by powerful casino lobbyists with a financial stake in eliminating lawful alternatives. That’s not consumer protection, that’s protectionism.”
