The Social and Promotional Games Association (SPGA) has issued a strong rebuke of New Jersey Assembly Bill 5447, calling the proposed sweepstakes casino ban "reckless" and "shortsighted" while highlighting the lawmaker's contradictory position on the issue.
The bill, introduced by Assemblyman Clinton Calabrese, aims to prohibit sweepstakes casinos in New Jersey and establish new penalties for unlicensed gambling operations. Enforcement would fall to the Division of Consumer Affairs and the Division of Gaming Enforcement.
What makes this legislation particularly controversial is that it represents a dramatic reversal from Calabrese's previous position. Just two months earlier, in January, the same assemblyman had introduced Assembly Bill 5196, which sought to regulate sweepstakes casinos rather than ban them outright. That earlier bill would have classified sweepstakes platforms as internet gaming operators and required them to partner with New Jersey casinos, similar to how real-money online casinos operate in the state.
"This shortsighted legislation abandons the state's progressive stance on gaming, directly contradicting the regulatory framework championed by Assemblyman Clinton Calabrese earlier this year — one that would ensure oversight, licensing, and taxation, bringing sweepstakes in line with other regulated gaming entities," the SPGA stated in its response to the new bill.
The SPGA, formed in September 2024 to advocate for responsible social sweepstakes gaming, had fully endorsed Calabrese's original regulation proposal. The organization has emphasized that sweepstakes casinos operate legally under specific sweepstakes laws and should not be conflated with illegal offshore gambling operations.
"New Jersey has led the way in gaming regulation — not followed. With innovative licensing frameworks for digital entertainment, the state sets the standard. This smart, forward-thinking approach should continue, not be replaced by outdated prohibition," the SPGA continued in its statement.
Sweepstakes casinos have gained popularity because they allow players to enjoy casino-style games without making cash deposits. Upon signing up, players receive free gold or sweepstakes coins, with the option to purchase additional tokens. By distributing free coins for registration or daily login, these platforms navigate around traditional cash betting laws.
The SPGA maintains that its members "take pride in driving innovation and providing safe, engaging digital entertainment to New Jersey consumers" and has urged lawmakers to "reject Assembly Bill 5447 and instead pursue the balanced regulatory approach previously introduced to protect consumers while allowing innovation to flourish."
New Jersey's bill reflects a broader nationwide trend of legislative action against sweepstakes casinos. Several states have recently moved to regulate or ban these platforms:
Maryland is considering Senate Bill 860, which specifically targets sweepstakes casinos.
Mississippi's Senate voted unanimously in February to ban certain online gaming platforms, including sweepstakes casinos.
Washington state has taken enforcement action against sweepstakes operators.
California officials have pursued legal action against sweepstakes casino companies.
Florida lawmakers are weighing legislation that could effectively prohibit these platforms.
Despite these efforts, sweepstakes casinos continue to operate in many states without state-specific licensing, claiming compliance with federal sweepstakes laws that exempt them from traditional gambling regulations.
According to industry sources, over 20 private lawsuits have been filed against sweepstakes operators, but many of these cases have stalled in procedural disputes. Courts have yet to reach definitive rulings on key issues such as arbitration agreements and jurisdictional questions.
Calabrese's bill is not the only sweepstakes-related legislation in New Jersey. Senate Bill 4109, introduced by Senator Joseph Cryan, also designates sweepstakes casinos as internet gaming and calls for licensing and taxation rather than an outright ban.
As the debate continues, the SPGA has emphasized its commitment to working with policymakers "to ensure that millions of American adults can continue enjoying their preferred gaming experiences within a properly regulated environment."
The fate of Assembly Bill 5447 remains uncertain as it awaits its first reading and consideration by state lawmakers. If New Jersey does implement stricter enforcement, it could potentially influence other states to follow suit, further complicating the already uncertain legal landscape for sweepstakes casinos across the United States.