New Jersey’s Sweepstakes Crackdown Bill Gains Traction

A Step Toward Banning Sweepstakes

Sponsored by Senators John Burzichelli and John McKeon, SB 4282 targets unregulated platforms that mimic casinos or lotteries, often using dual-currency tricks to dodge state gambling laws. Burzichelli said, “We will not allow bad actors to exploit legal loopholes at the expense of consumers,” signaling a push to protect residents from sketchy operations.

SB 4282 redefines gambling to include “buying, selling, or trading something of value” based on a chance contest’s outcome, zeroing in on sweepstakes that award prizes through virtual coins swapped for cash.

The bill bans these schemes, whether online or in-person, but carves out exceptions for legit promotions. Sweepstakes can stay legal if they offer free entry, limit paid entries to purchases of food or drinks under $20, and clearly disclose rules and odds. Virtual coins or credits can’t be swapped for money, ensuring no backdoor gambling.

Big Fines and Tough Enforcement

Operators running illegal sweepstakes face civil fines up to $100,000 for a first offense and $250,000 for repeats, with double restitution for seniors.

The Division of Consumer Affairs handles sweepstakes enforcement, while the Division of Gaming Enforcement tackles other illegal gambling. Both can issue subpoenas, cease-and-desist orders, and slap liens on violators’ property.

Proxy betting and insider sports wagers are also outlawed, with courts able to yank licenses from offenders.

SB 4282 now heads to the full Senate, with a companion bill, A5447, already moving through the Assembly’s Tourism, Gaming, and Arts Committee. If passed and signed by Governor Phil Murphy, New Jersey could join states like Montana and Louisiana in banning sweepstakes casinos.