Governor Phil Murphy has signed a bill into law which prohibits the sweepstakes model of wagering in the state of New Jersey.
It was signed into law on August 15, with the bill – named A-5447, having first been introduced in March of this year. In June, the matter was in committee and it eventually passed in August.
It aims to prevent sweepstakes-style gambling operations in New Jersey through establishing new legal definitions and enforcement mechanisms. As part of the new law, penalties for unlawful gambling operators and practices have included and it’ll be up to the Division of Consumer Affairs and Division of Gaming Enforcement to enforce these established penalties.
It has been designed to close legal loopholes and provide more robust consumer protections.
https://twitter.com/njassemblydems/status/1956417371834339565/
New Jersey sweepstakes ban includes potential fines of up to $250,000
According to the bill, which is now law, ‘sweepstakes’ has been defined as a promotional event where participants can win prizes. Now, any sweepstakes where people must pay or provide something of value to enter would be considered unlawful gambling. The potential civil penalties of this are up to $250,000 for repeat offenders.
The bill, however, does provide a narrow exception for sweepstakes that offer a free method of entry, along with clear disclosure of rules and odds and prohibits participation from minors for prizes over $1,000, and ensures equal winning odds regardless of entry method.
NJ A5447 also includes the expansion of definitions of gambling activities and increases potential criminal penalties for various gambling-related offenses.
This latest move marks another state which has approved a sweepstakes ban, with others like Connecticut, Montana, Nevada, and New York having already voted to prohibit this model of wagering. Some other states have been discussing the potential legislation too, including Maryland, Florida, and Arkansas, although some discussions have died out.
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