New Jersey Bans Sweepstakes Casinos Statewide

June 30, 2025: NJ Assembly Bill 5447 passes both houses with strong support. Assembly 69-10-1, Senate 34-5. Once Governor Phil Murphy signs it, sweepstakes casinos will be banned in New Jersey.

NJ is not the only state to ban sweepstakes casinos. Montana was the first to do so in May 2025 (effective 10/1/2025), followed by Connecticut in June. New York, Nevada and others have similar bills pending.

Sweepstakes Casino Model Explained

Sweepstakes casinos let you play for free – no real money needed. You can get free coins just for signing up, but you can also buy more coins if you want to play longer.

Sweepstakes casinos use a dual-currency system – Gold Coins and Sweeps Coins. Gold Coins are for fun and cannot be turned into cash. Sweeps Coins can be won or given as bonuses, and players can exchange them for real prizes or money.

By offering free entry and claiming to be promotional games rather than gambling, these sites have operated in states where traditional online casinos are illegal. That’s why legislators feel they operate in legal grey areas.

The New Jersey Ban: Details and Implementation

BREAKING: The Louisiana Attorney General has issued a legal opinion declaring that online sweepstakes casinos constitute illegal gambling, and threatening criminal and civil enforcement action against those who continue to operate in the state. (h/t @hglaser1) pic.twitter.com/RLKUKOIoQg

— Daniel Wallach (@WALLACHLEGAL) July 2, 2025

Assembly Bill 5447 targets the sweepstakes model of gambling and creates new penalties for unlawful gambling operations. The bill passed quickly through both houses as lawmakers rushed to meet the 7/1 budget deadline.

Here’s the bill at a glance:

• Prohibited activities: Operating sweepstakes casinos or offering games with cash prizes through dual-currency systems.
• Fines: Up to $100,000 for the first offence and $250,000 for each subsequent offence.
• Enforcement: Division of Consumer Affairs and Division of Gaming Enforcement will investigate and penalise violators.
• Effective Date: As soon as the governor signs it. No grace period for operators to adjust.
• Exemptions: Traditional sweepstakes and free contests with clear rules will still be allowed.

NJ Joins Six Other States Banning Sweepstakes Casinos

New Jersey is part of a growing list of US states taking action against sweepstakes casinos. Many have already kicked off with the legislation, while a few have already passed it into law, and it’s currently effective.

State-level bans are on the rise in 2025. Montana was first in May, then Connecticut in June. New Jersey’s approach is interesting as it includes sports betting misconduct provisions, so it’s a full sweep of gambling regulation.

Also, the sweepstakes casino timeline is getting more scrutiny across the country. While some states like Michigan and Washington have had these platforms illegal for a while, most explicit bans started this year and are gaining momentum. A few other states, like Ohio and California, are considering similar legislation.

Our Sources & References For More Information

• New Jersey Public Documents
• Sweepstakes FAQ | Washington State Gambling Commission
• Montana becomes first state to officially ban sweepstakes casinos – EGR North America
• @WALLACHILEGAL’s Post on X