New Jersey to Regulate Sweepstakes Casinos

A new bill set to regulate online casinos has been introduced into the state of New Jersey. On January 16, the New Jersey legislature proposed a bill that designated sweepstakes casinos as Internet gaming. Going forward, sweepstakes casino operators are required by the New Jersey law to gain licenses and pay taxes to maintain operations in the state. According to the bill, online sweepstakes casinos and corresponding sweepstakes software providers are now among the list of enterprises that sit under the casino service industry.

Any casino company looking to operate an online sweepstakes casino in New Jersey must submit an independent third-party audit. This audit is required by the law to detail and verify the integrity of the operations of the sweepstakes casino as well as its financial standing prior to getting a canal service enterprise license. For sweepstakes casinos to maintain their operation in the state, they’re required to submit an updated audit every six months showing a transparent view of their operations and finances.

More Restrictions on Casino Service Enterprises in Proposed New Jersey Bill

The new bill also placed restrictions to casino companies that can operate in the state. The current amendments state that only enterprises or casinos located in Atlantic City or its internet gaming affiliate may conduct internet gaming business and allow its facilities to be used for placing wagers. The penalty for breaking the law equates to a fine of $1000 per player per day. While any enterprises caught advertising that it’s facilities are available for casino operations will be subject to $10000 for every advertising law broken.

The New Jersey legislature will prosecute states that it will collaborate with federal, state and local law enforcement agencies to investigate online sweepstakes casinos and associated organizations that engage in Internet gaming while neglecting the demands of the law.

The bill, introduced by assemblyman Clinton Calabrese, would categorize online sweepstakes casinos under internet gaming operations, subjecting them to the same regulatory oversight and taxation as any other online gambling platform. US states are tightening regulatory oversight over sweepstake casinos as the aftermath of several sweepstakes casinos lawsuits lingers on. In addition to the wave or scrutiny into gambling products like sweepstakes in 2024, the legislature is also dealing with arguments that unregulated sweepstakes sites represent illegal gambling.

Commenting on the new bill by the New Jersey legislature in an interview with NEXT.io, the Social and Promotional Gaming Association (SPGA) affirmed that it’s a welcomed development. According to the SPGA, the association is behind any law that allows for transparent, innovative, and responsible social and promotional gaming experiences. Since the bill signs with the SPGA’s core objectives, sweepstakes casino operators can rest assured that an accommodating regulatory environment is being provided.

Final Say

The wave of sweepstakes casinos has grown stronger in recent times due to its operational model. Players can get promotional credit or in-game currency that can be exchanged for cash either by purchasing a product or completing selected tasks. The new bill is targeted at ensuring that all sweepstakes providers are regulated by the law providing an avenue for consumers to explore sweepstakes casinos safely. The legalisation would take effect 30 days after the bill is enacted. However, sweepstakes critics suggest that the bill may not pass in legislation due to the political interests in the state.