Gov. Murphy signs ban on sweepstakes-style gambling in New Jersey
New Jersey has moved to outlaw sweepstakes-style gambling, with Gov. Phil Murphy on Friday signing legislation targeting what lawmakers and regulators describe as a loophole allowing unlicensed casinos and sportsbooks to operate without oversight.
The measure, sponsored by state Sens. John Burzichelli (D-Salem, Gloucester, Cumberland) and John McKeon (D-Essex, Passaic), prohibits the use of sweepstakes platforms that mimic casino games while avoiding the state’s regulatory framework.
“ New Jersey has a proud tradition of responsible gaming regulation that we don’t want to be undermined by bad actors seeking to exploit legal loopholes at the expense of consumers,” Burzichelli said. “This will ensure that our laws are clear, our penalties are stronger, and that we have the tools necessary to shut down illegal sweepstakes gambling operations before they can cause further harm.”
McKeon emphasized the risks for younger residents: “ Young people are especially vulnerable to schemes that attempt to entice them into illicit gambling practices. This law will put safeguards in place to protect them and others from being exploited and drawn into gambling activities that could haunt them for years to come.”
The legislation sets penalties of $100,000 for a first offense and $250,000 for subsequent violations. Sweepstakes platforms have grown in recent years by offering online games such as slots, poker, blackjack, and roulette under the guise of “free-to-play” entertainment.
Players are typically able to purchase virtual coins, often referred to as “gold coins,” for use in games, while receiving a secondary type of credit called “sweep coins.” These sweep coins can sometimes be redeemed for cash or prizes, requiring either financial investment or a significant time commitment to cash out.
The American Gaming Association, the casino industry’s national trade group, has warned that such operations bypass gambling laws and consumer safeguards, leaving players unprotected compared to regulated casinos.
Opponents of the ban, including the Social Gaming Leadership Alliance, said Murphy’s decision goes against public sentiment. The group, which represents sweepstakes gambling operators, called the measure “a clear case of government overreach that defies public opinion.”
“Lawmakers in New Jersey have completely ignored their own constituents and enacted a ban that voters oppose,” said Jeff Duncan, the alliance’s executive director and a former Congressman from South Carolina. “This law is a textbook example of government overreach that strips away entertainment choices from adults who should be free to make decisions about their own entertainment.”
The group maintains that sweepstakes-style platforms are legal because players can participate without paying. “Online social games can always be enjoyed for free. No purchase is ever required to play,” its website states, adding that such games represent “a mainstream digital entertainment category” that reaches millions of Americans.
The new law permits sweepstakes-style games to operate in New Jersey only if no purchase is required. Several other states have taken similar action. Connecticut, Montana, and Washington already ban sweepstakes casinos outright.
Michigan has forced operators out through cease-and-desist orders, while Idaho prohibits redemption of sweep coins for cash. Lawmakers in New York, Florida, and Ohio have introduced bills to impose bans, although a similar measure in Maryland failed to pass this year.
https://www.yogonet.com/international/news/2025/08/18/114899-gov-murphy-signs-ban-on-sweepstakesstyle-gambling-in-new-jersey