New Jersey Lawmaker Pivots from Regulating to Banning Sweepstakes Casinos
New Jersey’s approach to sweepstakes casinos has taken a sharp turn, with Representative Clinton Calabrese now pushing for a total ban after initially favoring regulation.
From Rules to Restriction
Calabrese first rolled out Assembly Bill 5196, aiming to bring sweepstakes and social casinos under New Jersey’s online gaming umbrella. The bill would have classified these platforms as internet gaming operators, requiring partnerships with brick-and-mortar casinos, mirroring the state’s real-money online casino model.
Licensing, oversight, and taxation were part of the deal, folding sweepstakes into a regulated framework alongside giants like DraftKings and Bet365.
But that plan’s off the table. Calabrese’s newer Assembly Bill 5447 flips the script, calling for an outright ban on sweepstakes casinos. Targeting sites where virtual coins translate to real rewards, the measure slaps new penalties on illegal gambling operators. Enforcement would fall to the Division of Consumer Affairs and the Division of Gaming Enforcement.
Industry Pushback
The Social and Promotional Games Association (SPGA) isn’t taking the ban lightly. The group blasts Assembly Bill 5447 as a step backward, clashing with New Jersey’s forward-leaning gambling policies.
SPGA argues it ditches a smarter path Calabrese once backed: regulation, not prohibition. Licensing and taxing sweepstakes, they say, would protect players while fueling innovation and revenue, not snuffing out a budding market.
SPGA’s urging lawmakers to ditch the ban and revisit 5196’s playbook. They’re ready to team up with regulators to craft rules that shield consumers without choking growth, a balance they claim 5447 tosses out the window. The about-face from Calabrese, they note, muddies the waters in a state long seen as a gaming trailblazer.
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