New Jersey Bans Sweepstakes Casinos and Proxy Betting Under New Gambling Reform Law
Signed on 15 August, the legislation makes it unlawful to operate sweepstakes-style gambling defined as promotional events using dual-currency systems or similar mechanics to award prizes.
New Jersey Governor Phil Murphy has signed Assembly Bill 5447 into law, introducing a wide-ranging ban on sweepstakes casinos, proxy sports betting, and related practices across the state.
Signed on 15 August, the legislation makes it unlawful to operate sweepstakes-style gambling defined as promotional events using dual-currency systems or similar mechanics to award prizes. The only exemptions apply to free-entry draws and promotions linked to low-value purchases such as food or soft drinks.
The new law expands the definition of unlawful gambling and introduces substantial penalties, with fines of up to $100,000 for a first offence, rising to $250,000 for subsequent breaches. It also empowers regulators – including the Division of Gaming Enforcement – to seek court injunctions against non-compliant operators.
Further amendments tighten rules on game manipulation — now explicitly covering sports contests — and prohibit the operation of unlicensed online gambling platforms described as “online gambling resorts.”
Despite support from regulators, the bill has faced criticism. The Social and Promotional Games Association argued that it could unintentionally outlaw free-to-play platforms enjoyed responsibly by millions of adults, while others warned its broad definitions risk pushing liquidity into the black market.
Several operators have already responded. In July 2025, VGW confirmed it would withdraw its Chumba Casino and Luckyland Casino products from New Jersey ahead of the anticipated ban — following similar exits from New York, Mississippi, and Delaware earlier in the year.
Related news: New Jersey Lawmaker Proposes Ban on Micro Betting to Curb Gambling Risks
