New Jersey Lawmaker Reverses Course on Sweepstakes Gaming, Seeks Ban Of Unregulated Wagering

A New Jersey legislator has reversed course on sweepstakes gaming.


Assemblyman Clinton Calabrese recently submitted bill A5447 calling for a restriction on the questionable online social casinos and sportsbooks less than two months after proposing legalization.


Calabrese's newest expense desires to "prohibit sweepstakes model of wagering" and establish "brand-new charges for illegal gambling operations and practices." The legislation also requires the New Jersey Division of Consumer Affairs and Division of Gaming Enforcement to enforce those penalties.


In January, Calabrese introduced A5196, a costs that designated "sweepstakes gambling establishments as internet video gaming" with license, oversight, and tax requirements equal to the legal iGaming that New Jersey currently permits and manages.


Under fire


Sweepstakes gaming varies from conventional online gambling establishments and sportsbooks because it uses complimentary coins to play video games. Additional coins can be bought and exchanged for cash and rewards on slots, table games, and sports wagering.


These operators, like McLuck, Chumba Casino, and High 5, aren't managed or taxed in legal and unlawful U.S. gaming jurisdictions.


The market has removed over the last few years with earnings quotes in the U.S. alone reaching $6.9 billion in 2025.


Also called social casinos, sweepstakes business' effect has actually mainly gone unnoticed by lawmakers and regulators. However, last year, the American Gaming Association, a U.S. trade market group for sportsbooks and iGaming operators, asked states to assess their laws and determine whether sweepstakes companies are operating lawfully.


The Indian Gaming Association has publicly decreed that sweepstakes gaming is unlawful and has asked state Attorney Generals to do something about it.
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