New Jersey Bill Against Sweepstakes Takes Step Forward New Jersey sweepstakes casinos bill closer to approval

A legislation aimed at banning online sweepstakes casinos in New Jersey has taken a significant step forward as it advanced through the Assembly on Thursday, following a period of inactivity lasting two months.

Progress of Bill A5447

The Assembly’s Tourism, Gaming, and the Arts Committee voted unanimously to support Bill A5447, which was introduced by Assemblymen Clinton Calabrese and Sterley Stanley in March. This bill seeks to curb the growing presence of sweepstakes casinos in the state, which have been operating in a gray area of the law.

To formulate a robust definition of sweepstakes casinos, legislators worked diligently to ensure that the bill does not inadvertently hinder legitimate businesses. Notably, an amendment was made to explicitly state that the bill encompasses “any game that mimics or simulates casino-style games or sports wagering.”

The next step for the bill is its consideration by the Assembly Consumer Affairs Committee. Given that the New Jersey legislative session extends until the year’s end, there remains ample time for the bill to navigate through all necessary stages for legal approval.

Addressing Legal Loopholes

Assemblyman Calabrese emphasized that various companies have been “exploiting a certain loophole” to operate sweepstakes casinos. Stephan Finkel, the Director of Legislative Affairs for the Attorney General’s office, reinforced the notion that such sweepstakes have not been sanctioned by New Jersey voters, as state law mandates that any form of gambling must undergo a referendum. Finkel argued that this type of gambling is inherently unconstitutional.

He further highlighted the necessity for precise terminology to effectively close the existing loophole, stating, “The legislature can be very clear in saying, ‘this is what isn’t allowed in our gambling laws.’”

The Sports Betting Alliance (SBA) has thrown its weight behind the initiative, viewing the sweeps model as an unfair competitive advantage. Eric Scheffler, a representative for the SBA, remarked that this legal maneuver enables unregulated operators to mimic the online casino experience without adhering to the licensing, regulatory, and tax frameworks established by state policymakers nationwide.

Members of the SBA, which include industry giants like DraftKings, BetMGM, and FanDuel, are keen to safeguard their revenue channels against the encroachment of illegal online gaming.

The Landscape of New Jersey Casino Gaming

Since the legalization of online casinos in New Jersey in 2013, licensed operators have generated a robust $1.78 billion in tax revenue. In 2023, New Jersey’s online casinos achieved a remarkable milestone, amassing $2.39 billion in revenue—a 24.1% increase from the previous year’s $1.92 billion.

However, the rise of sweepstakes casinos has also generated concern, as unregulated operators reported around $1.5 billion in revenue last year. The Responsible Gaming Task Force in New Jersey noted that “28% of New Jerseyans have reported engaging in one or more forms of unregulated or illicit gambling in the past 24 months.”

This new legislation seeks to address this burgeoning issue while simultaneously protecting the integrity of the state’s legal gaming industry, ensuring that all gambling activities are conducted within a regulated framework that prioritizes consumer safety and fair competition.

Conclusion

The advancement of Bill A5447 marks a crucial step in New Jersey’s ongoing efforts to regulate the gaming industry effectively. By closing existing loopholes and reinforcing definitions related to gambling activities, legislators are working to ensure a fair and legal landscape for both operators and consumers. As this bill progresses through the legislative process, it reflects the state’s commitment to maintaining the integrity of its gaming environment in the face of evolving industry dynamics.

About the Author:
Adam Roarty is a seasoned writer with extensive expertise in the gambling industry. Over the past five years, he has been a content writer and editor for prominent platforms including Oddschecker, CoinTelegraph, and Gambling Industry News, providing in-depth knowledge of sports betting and online gambling.