Casino ban in New Jersey, effective August 14, enacted despite governor's silence on the matter
New Jersey has officially banned sweepstakes casinos, with Governor Phil Murphy signing Assembly Bill 5447 into law on August 15, 2025 [1][2][3][4][5]. The law makes the operation of sweepstakes casino sites illegal in the state.
The bill, sponsored by Assemblyman Clinton Calabrese, defines a prohibited sweepstakes casino as promotional or marketing events where a prize or its equivalent is awarded, including through dual-currency payment systems [2]. The law aims to protect New Jersey’s regulated sportsbooks and online casinos from unfair competition and addresses concerns over market integrity by outlawing proxy betting and other activities.
Penalties for violating the sweepstakes casino ban are significant. A first offense carries a fine of up to $100,000, and repeat violations can result in fines up to $250,000 [2]. Regulators are also empowered to seek injunctions against offenders.
The bill also broadens the legal definition of gambling to include trading or selling something of value tied to uncertain outcomes, and specifically prohibits proxy wagers of $1,000 or more [2].
Despite criticism from industry groups arguing that sweepstakes platforms are legal and enjoyed responsibly by millions, the state maintains the ban is necessary to protect regulated gaming markets and ensure fairness [2].
The change will mark the end of easy access to sweepstakes casinos offering cash-out winnings for New Jersey players. Remaining operators in the state will have three main options: exit the market, pivot to low-value prize promotions, or develop alternative formats like skill-based games or DFS-style competitions.
Notable brands such as Chumba Casino, LuckyLand Slots, Pulsz, and McLuck are expected to exit the New Jersey market before August 14. VGW, the parent company of Chumba Casino and LuckyLand Slots, has notified New Jersey players that they will no longer be eligible to participate.
Enforcement of the new law will be handled jointly by the New Jersey Division of Gaming Enforcement (DGE) and the Division of Consumer Affairs. The legislation passed both chambers of the New Jersey Legislature on June 30.
History has shown that companies that adapt quickly and creatively stand the best chance of survival in similar situations. As the era of unchecked growth in the sweepstakes casino industry may be coming to a close, it will be interesting to see how the remaining operators navigate this change.
[1] New Jersey Online
[2] The Star-Ledger
[3] ABC News
[4] CBS News
[5] NBC News
- The online casino industry in New Jersey will face less competition with the ban on sweepstakes casinos, as Governor Phil Murphy signed Assembly Bill 5447 into law on August 15, 2025.
- The new law aims to protect New Jersey’s regulated sportsbooks and online casinos from unfair competition, addressing concerns over market integrity by outlawing proxy betting and other activities.
- Penalties for violating the sweepstakes casino ban are significant, with fines of up to $100,000 for a first offense and up to $250,000 for repeat violations, in addition to injunctions sought by regulators.
- Political and financial considerations have played a role in the ban, as critics from the industry argue that sweepstakes platforms are legal while the state maintains the ban is necessary to protect regulated gaming markets and ensure fairness.
