Home New Jersey one signature away from banning sweepstakes casinos

New Jersey one signature away from banning sweepstakes casinos

New Jersey is on the teetering edge of becoming the next state to ban sweepstakes casinos. After New York and Connecticut pulled the trigger on the bans, the state’s governor is the only person standing between the bill’s success.

The bill has been circling the New Jersey legislation circuit since March. It hasn’t been met with much opposition from lawmakers, passing both votes by 69-10-1 and 34-5 in the Senate.

Sweepstakes casinos have become a major topic of discussion within the gambling industry. While technically not classified as gambling, many of these online – and often offshore – platforms feature slot machines or similar emulated casino games. Players use a dual-currency system, consisting of non-cash ‘gold coins’ for gameplay and bundled ‘sweep coins,’ which typically hold a value equivalent to one dollar.

As it’s technically not gambling, and with major offshore platforms operating the sites, states have resorted to bans to try to curb their rise. Regulatory challenges in some parts of the US have contributed to a recurring news cycle of enforcement efforts and newly implemented bans.

SPGA hits out at New Jersey sweepstakes bill

Now, the SPGA (Social & Promotional Games Association) has hit out at the governor’s potential decision, calling for a veto of the bill. It claims that the bill “ignores data,” and “undermines innovation,” and “puts New Jersey’s reputation as a forward-thinking leader in tech and entertainment at risk.”

The bill states explicitly that it targets similar elements of sweepstakes casinos, rather than just sweepstakes themselves. As with the New York bill, it is specifically ensuring that it prohibits operators using “dual currency” systems, and provides specific definitions in regards to what the bill is covering.

The SPGA has previously clashed with other bodies in the gambling industry, including the AGA in February. During the exchange, the SPGA claimed that because the gambling industry grew in 2024 by 7.5%, sweepstakes casinos aren’t an issue for the industry at large. However, the AGA remained firm in that it would tackle operators that “exploit legal loopholes”.

This year, New Jersey casinos reported that they had lost 5.1% in revenue.

ReadWrite has reached out to the New Jersey governor and SPGA for comment.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the gambling and blockchain industries for major developments, new product and brand launches, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Joel Loynds
Tech Journalist

Joel Loynd’s obsession with uncovering bad games and even worse hardware so you don’t have to has led him on this path. Since the age of six, he’s been poking at awful games and oddities from his ever-expanding Steam library. He’s been writing about video games since 2008, writing for sites such as WePC and PC Guide, as well as covering gaming for Scan Computers, More recently Joel was Dexerto’s E-Commerce and Deputy Tech Editor, delving deep into the exploding handheld market and covering the weird and wonderful world of the latest tech.

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