On August 15th, 2025, Governor Phil Murphy signed bill A5447 into law, making New Jersey the most recent state to take action against sweepstakes casino websites.
The legislation, which had cleared the New Jersey Legislature on June 30th, targets sweepstakes platforms that offer “gold coins” and a secondary currency called “sweeps coins,” redeemable for real prizes.
Opponents view these websites’ dual-currency wagering model as a way to provide real-money gambling in states where it isn’t yet legal, which has drawn criticism.
Advocates contend that sweepstakes are valid competitions, frequently hosted by well-known companies like McDonald’s and Publishers Clearing House. Moreover, participants can participate for free without making a purchase.
A Nationwide Movement Against Sweepstakes
This year, New Jersey is the sixth state to pass legislation affecting online casinos that offer sweepstakes.
Although Nevada’s bill concentrated on enforcement against unlicensed operators rather than outright banning sweeps, Connecticut, Montana, and Nevada have already passed legislation.
Although both Louisiana and New York have passed laws prohibiting sweepstakes, neither state has fully implemented the law. The governor of Louisiana vetoed his state’s ban, while the governor of New York has not yet signed the legislation.
Operators such as the Australian company Virtual Gaming Worlds (VGW) were issued cease-and-desist orders by the Gaming Control Board of Louisiana and the Attorney General of New York. As a result, VGW withdrew from several states, including New Jersey.
According to a study released by the American Gaming Association (AGA) on July 31st, 31% of sweepstakes players say that the activity is “probably gambling,” and 59% of players think it is “definitely gambling.”
750 monthly players were polled for the study, which revealed a lack of clarity and worry regarding the nature of sweepstakes platforms.
Jeff Duncan, former congressman and Social Gaming Leadership Alliance (SGLA) leader, urged Governor Murphy to veto the New Jersey bill, calling it “the wrong solution to a misunderstood issue” and emphasising the need for a “real conversation about consumer protection, innovation and economic opportunity.”
The post New Jersey joins growing push to ban sweepstakes casino sites appeared first on Esports Insider.
