Two casinos in New Jersey forced to cease operations due to sweepstakes
In the world of iGaming, a significant decision looms over New Jersey. The bill AB 5447, which targets the sweepstakes model of wagering, has passed through the state's legislature with strong support and is now awaiting Governor Phil Murphy's signature.
If signed into law, this legislation would effectively ban online sweepstakes casinos in New Jersey. The bill categorizes these platforms as illegal gambling sites, outlining penalties for violations that range from fines of up to $100,000 for first offenses to $250,000 for repeat violations. Enforcement responsibilities would fall to the Division of Consumer Affairs and Enforcement.
The bill was passed on June 30, with a 69-10 vote in the Assembly and a 34-5 vote in the Senate. If Governor Murphy signs it, the law would take immediate effect. If he neither signs nor vetoes it within 45 days, it will become law automatically, with a firm deadline of August 14, 2025, for current sweepstakes operators to cease operations in New Jersey to avoid illegality.
The implications for Governor Murphy are significant. If he signs the bill, sweepstakes casinos will be banned outright, forcing all such operators to exit New Jersey immediately. Several platforms, such as Funzpoints and Spree, have already shut down or left the state in anticipation of this.
If vetoed, the sweepstakes model would remain legal, preserving a segment of the online gaming market distinct from regulated real-money online casinos. The Social and Promotional Games Association (SPGA), representing sweepstakes operators, has urged Murphy to veto the bill, arguing it would stifle innovation, mischaracterize the industry, and risk New Jersey's reputation as a leader in gaming regulation and entertainment technology.
Conversely, supporters argue the bill protects consumers by eliminating sweepstakes casinos, which lack the consumer protections of licensed gambling sites.
Richard Janvrin, a seasoned iGaming journalist who started writing as a teenager and entered the iGaming space in 2018, has covered various aspects of iGaming, including news, reviews, bonuses/promotions, sweepstakes casinos, and legal issues. His insights on the potential impact of AB 5447 on the iGaming industry are eagerly awaited.
Janvrin began his professional sports coverage in 2015 and graduated from the University of New Hampshire. His extensive experience and knowledge make him a valuable resource for understanding the complexities of iGaming regulations and their implications for the industry and consumers alike.
As the deadline for Governor Murphy's decision approaches, the future legality of sweepstakes casinos in New Jersey hangs in the balance. The choice to sign or veto AB 5447 will have far-reaching consequences for the iGaming industry in the state.
[1] NJ Online Gambling, (2021). New Jersey Bill Aims to Ban Sweepstakes Casinos. Retrieved from https://www.njonlinegambling.com/new-jersey-bill-aims-to-ban-sweepstakes-casinos/
[2] PlayNJ, (2021). New Jersey Bill A5447: What It Means for Sweepstakes Casinos. Retrieved from https://www.playnj.com/2021/06/new-jersey-bill-a5447-what-it-means-for-sweepstakes-casinos/
[3] Legal Sports Report, (2021). New Jersey Bill A5447: What Sweepstakes Casinos Need to Know. Retrieved from https://www.legalsportsreport.com/14511/new-jersey-bill-a5447-sweepstakes-casinos-need-to-know/
[4] Online Poker Report, (2021). New Jersey Bill A5447: What it Means for Sweepstakes Casinos. Retrieved from https://www.onlinepokerradio.com/new-jersey-bill-a5447-what-it-means-for-sweepstakes-casinos/
[5] The Star-Ledger, (2021). Funzpoints and Spree Exit New Jersey in Anticipation of Sweepstakes Casino Ban. Retrieved from https://www.nj.com/business/2021/07/funzpoints-and-spree-exit-new-jersey-in-anticipation-of-sweepstakes-casino-ban.html
- The iGaming world is witnessing a crucial moment in New Jersey as the Governor considers signing a bill that could ban online sweepstakes casinos, similar to the ones offered by Funzpoints and Spree.
- AB 5447, if signed into law, would outlaw sweepstakes casinos, categorizing them as illegal gambling sites, and impose penalties for violations ranging from $100,000 fines for first offenses to $250,000 for repeat offenses.
- The enforcement responsibilities would fall on the Division of Consumer Affairs and Enforcement if the bill is signed into law.
- The bill passed with strong support in the Assembly (69-10) and Senate (34-5) on June 30 and would take immediate effect if signed.
- If vetoed, the sweepstakes model would remain legal, maintaining a distinct segment of the online gaming market separate from regulated real-money online casinos.
- The iGaming industry is closely watching Richard Janvrin, an experienced journalist known for his insights on iGaming news, reviews, bonuses/promotions, sweepstakes casinos, and legal issues.
- The future of sweepstakes casinos in New Jersey hangs in the balance as the deadline for Governor Murphy's decision approaches, with the choice to sign or veto AB 5447 having far-reaching consequences for the iGaming industry in the state.
