Lawmakers in New Jersey are cracking down on illegal gambling disguised as sweepstakes games.
A Senate committee in Trenton, New Jersey, approved a new bill that targets such unregulated operations on May 29. Supposed sweepstakes games are being used as a cover for illegal gambling, but this bill hopes to prohibit illegal activities.
Senate Bill 4282 targets businesses running sweepstakes-style games, which it defines as any promotional event (online or in-person) where people can win something of value. This includes indirect prizes, such as dual-currency systems.
If passed through, the bill would prohibit any sweepstakes games that offer prizes in exchange for payment. Contests that offer free entry to venues or are tied to small purchases like food and drink would still be allowed under the proposed bill. In addition, the bill would also prevent anyone under the ag eof 18 claiming a prize with a value of over $1,000 without their parent or guardian’s consent.
What does the New Jersey legislation seek to do?
The hope is that consumers can be protected from deceptive games and potentially harmful gambling operations.
“We will not allow bad actors to exploit legal loopholes at the expense of consumers,” said Senator John Burzichelli, as reported by Gambling News. “This bill will ensure that our laws are clear, our penalties are stronger, and that we have the tools necessary to shut down illegal sweepstakes gambling operations before they can cause further harm.”
The bill also opens the door for the Division of Consumer Affairs (DCA) and the Division of Gaming Enforcement (DGE) to complete more detailed investigations and take action against violators, putting more power to official agencies to prevent illegal gambling. Offenders could face penalties of up to $250,000.
This comes just a few weeks after New Jersey also moved to limit gambling ads, seeking to reduce public exposure to gaming, especially when it comes to young people.
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