New Jersey says no to sweepstake casinos
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21 Aug 2025 •
Reading time: 2 minutes When New Jersey Governor Phil Murphy signed Bill A5447 on Friday, 15 August 2025, he officially put an end to a controversial model: sweepstake casinos. This turning point marks a clear intrusion by the legislature into a legal framework built on ambiguity.
What is a sweepstake casino?
In the recent history of online gambling, sweepstake casinos have flourished where legal online casinos remain prohibited. They offered two types of virtual currency: Gold Coins (for playing for free, with no value) and Sweeps Coins, which could be exchanged for prizes or real money. Operators emphasise that it is free, claiming that users can play without spending any money, and thus claim that they are not subject to gambling regulations.
But this stance is criticised. For many observers, it is a subterfuge designed to circumvent casino legislation. The dual-currency model is seen as a Trojan horse: masking real gambling behind the appearance of a promotional game. And in several US states where online casinos were not permitted, these platforms emerged in a regulatory grey area, without any restrictions
Why a ban now?
The arrival of Law A5447 is no coincidence. A number of states had already taken similar measures. New York and Louisiana were also considering bans, but one was awaiting the governor’s signature, while the other was rejected by a veto.
New Jersey has now officially joined this movement: the legislation prohibits the use of sweepstakes casinos, introduces criminal penalties and fines, and grants concrete control tools to the competent authorities: the Division of Consumer Affairs and the Division of Gaming Enforcement.
The new law criminalises a model that, until now, played on words and legal loopholes. It explicitly defines sweepstakes casinos as disguised gambling arenas, paving the way for targeted sanctions and rigorous enforcement. It gives the state the power to take action against operators suspected of circumventing gambling regulations.
An inspiring decision for other states?
New Jersey is one of the most regulated states in the field of gambling. Its legislative choices have often served as a model. By banning sweepstake casinos, the state is helping to rewrite the rules of legal gambling. Will other states follow suit?