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A guide to New Jersey’s sweepstakes casinos in 2026

If you’re looking for some decent New Jersey sweepstakes casinos to play slots or blackjack for real prizes without going through a licensed casino, the answer is now a hard no. We found out that New Jersey lawmakers have officially shut the door on those dual-currency platforms that let you play “free” games for cash prizes. But that doesn’t mean all fun is off-limits.

Renzo A.

Content Writer

Fact checked by

Kevin V. Velibor N.

Last updated

19 January 2026

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Key sweepstakes casino laws in New Jersey New Jersey’s sweepstakes casino ban (A5447) The state’s legal timeline Playing while outside New Jersey How to spot a no-go platform Taxes on sweepstakes winnings earned out of state Alternatives worth using Recommendations for New Jersey players Final thoughts New Jersey vs. neighboring states FAQs

Summary: Key laws for sweepstakes casinos in New Jersey

Let’s clear this up: New Jersey doesn’t care if a site calls itself “just for fun,” “free to play,” or “a promotional game.” Labels really don’t matter anymore.

If the setup includes:

→ a chance to win
→ a prize with real value
→ and some form of participation (money or effort)

…it’s officially gambling in the eyes of the state. And unless it’s licensed? It’s banned.

These are the laws that now define the rules — and more importantly, define what’s off-limits for New Jersey sweepstakes players like you:

Table: New Jersey laws that block sweepstakes casinos

Law	What it does	Why it blocks sweeps
A5447 (2025)	Bans the whole dual-currency model (even without payment or mail-in option involved).	If gameplay + virtual coins = real-world prizes, the site’s gone. It’s the law that ended everything.
N.J.S.A. 2C:37-1	Defines gambling as risking anything for a prize when chance is involved (doesn’t have to be cash.)	Makes it crystal clear: prize-based games = gambling. Without a license, that’s a crime.
Casino Control Act	Requires any prize-giving gambling to be licensed + tied to a legit NJ operator.	Sweeps sites don’t qualify for a license, so so they can’t operate here.
Consumer Fraud Act	Targets platforms with shady terms, unclear odds, sketchy prize rules.	Even if the gameplay seems fine, if the promo’s misleading, the site’s still in hot water.

NJ’s law that brought change (A5447)

If you’ve played on sites like Chumba, LuckyLand, or McLuck, you probably know the sweepstakes model.

There are 2 kind of coins, one for spinning, the other (Sweeps Coins, or SC) for winning real cash. It’s been around for quite some years and, until recently, operated in a gray area.

But then in June 2025, New Jersey decided that gray wasn’t good enough anympre. Lawmakers passed Assembly Bill 5447 (A5447), a bill that makes those online sweepstakes casinos flat-out illegal in the state.

Here’s what the NJ sweepstakes casino law does:

Bans all kind of online games that use virtual currencies to award cash or real-world prizes — regardless of whether you paid to play or not
Hands enforcement power to both the Division of Gaming Enforcement (DGE) and the Division of Consumer Affairs
Introduces steep penalties — up to $100,000 for a first violation, and $250,000 or more for doing it again

And yes, even if the platform says “No purchase necessary” or offers a free-entry option, that doesn’t matter anymore. If coins can be converted into real money or gift cards, it’s now considered unlawful gambling in New Jersey.

📖 You can read the full bill on the New Jersey Legislature site (A5447)

Bottom line? The state no longer allows that model to operate here. And most of the big-name sweepstakes casino platforms have either already exited or are in the process of cutting New Jersey off completely.

Didn’t NJ consider regulating sweepstakes casinos?

Yep — for a minute. Back in January 2025, lawmakers introduced Bill A5196, which would’ve given sweepstakes casinos a way to operate legally under a license.

The idea was to force them to partner with Atlantic City casinos, follow audit rules, and submit to full state oversight.

But that plan didn’t make it far. The bill died in committee in April 2025 and was officially withdrawn — meaning it’s off the table.

So right now?

✅ A5447 — the ban — is law
❌ A5196 — the regulation bill — is not happening

If you hear a site or streamer mention “legal changes in NJ” or “a possible return under regulation,” that’s outdated info. The only law that matters now is the one that shut it down.

(Source: Duane Morris LLP, Jan 2025)

NJ’s sweepstakes casino legal timeline

January 2025

State legislators dropped Bill A5196 on the table — a proposal to license sweepstakes casinos under NJ’s existing gambling rules. It read more like a handshake than a crackdown: think audits, casino partnerships, and state oversight. Not everyone was sold.

April 2025

A5196 never made it past the discussion stage. After strong resistance from regulators and Atlantic City stakeholders who saw the model as a loophole, lawmakers quietly shelved the bill. The idea of a licensed sweepstakes industry was off the table.

May 2025

Enter A5447. No more negotiating. This bill went all-in on a ban — targeting the sweepstakes model itself, not just the platforms. It surged through committee hearings and picked up momentum fast.

June 2025

A5447 was signed into law. The moment it took effect, sweepstakes casinos — at least the ones offering cash or prizes through dual-currency models — became illegal statewide. No license path, no loopholes, no warnings.

🔎 Can you still play while out of state?

Yes—but with serious caveats.

If you travel to a state where sweepstakes casinos are still allowed (like Pennsylvania or Florida), you can technically create or access your account and play for prizes. But:

Your ID and address will still show you’re from NJ
Most sites now geo-fence at payout—you must be outside NJ when redeeming
VPNs don’t cut it—if caught, you’ll likely lose your balance

And remember: New Jersey has no jurisdiction over out-of-state sweepstakes platforms, so if something goes wrong, you’re on your own. There’s no regulator to help you.

🚩 How to spot a no-go platform

Use this as your checklist:

Does the site promise real prizes or cash?
Does it use sweeps coins, lucky coins, or anything that sounds redeemable?
Does it fail to mention New Jersey in the terms?
Is the “free entry” method buried or vague?

If the answer is “yes” to any of these, steer clear. It’s not built for New Jersey — and now, it’s not allowed here.

🧾 Taxes on sweepstakes wins (if earned legally out of state)

Even if you win legally while traveling, the IRS still wants its little share.

According to IRS Publication 525, sweepstakes prizes are taxable income — even if you didn’t spend money to enter. If your total redemptions from a site exceed $600 in a year, expect a 1099-MISC and a request for your Social Security number.

That win? It’s reportable.

📎 IRS Reference: Publication 525
📎 1099-MISC Reporting: IRS Instructions

🟢 A look at sweepstakes casino alternatives

If you’re itching for some online casino vibes, here’s what’s legal (and safe) in NJ:

1. Social casinos

Play slots, poker, roulette, and more with virtual coins. No prizes = no law broken.

🎮 Totally legal
💰 Coins are for fun, not payout
✅ No age restrictions enforced by the state (most platforms still require 18+)

2. Licensed NJ online casinos

Real gambling, real money — but under full state oversight. These include platforms tied to Atlantic City casinos and approved by the NJ Division of Gaming Enforcement.

🎰 Requires age verification
🆔 KYC enforced
💵 Fully regulated and taxed

3. Free mobile casino apps (non-prize)

These mimic the look of casino games but are hosted in app stores with no real rewards — just fun and bragging rights.

✅ Recommendations for New Jersey players (January, 2026)

If you’re living (or even just logging in) from New Jersey, follow this guide before you play anything casino-style online:

✔️ Stick to social casinos

They’re legal. They’re safe. And they don’t mess around with cash prizes.

No redemptions, no sweeps coins, no risk
Look for virtual-only coins and “for fun” language
Great for casual play without legal baggage

🔍 If the game doesn’t offer payouts or prizes, you’re in the clear.

✔️ Don’t touch sweepstakes casinos that still “work”

Just because the site loads doesn’t mean it’s legal.

If it offers cash prizes — it’s banned here
If you redeem from a NJ IP, you could lose everything
If you get caught in a policy change, you’re locked out with no backup

🚫 Functioning isn’t the same as being allowed.

✔️ Want to gamble for real? Use NJ-licensed sites

You’re lucky — NJ has a full roster of legit online casinos.

Backed by Atlantic City operators
Regulated by the NJ Division of Gaming Enforcement
They check your age, location, and ID — and actually pay out

🎰 This is the only way to gamble legally for money in New Jersey.

✔️ Avoid VPNs, hotspots, and travel tricks

Platforms check where you are when you cash out. Not just when you sign in.

Using a VPN can get your account banned
If your location pings NJ at payout, you’re flagged
No one owes you a redo — you’ll just lose access

📍 If you want to play while traveling, wait until you’re actually out of state.

✔️ Track the law

AB 5447 passed in mid-2025. It bans sweepstakes gambling structures statewide.

Don’t expect sites to warn you — many just disappear
Enforcement is handled by both the DGE and Consumer Affairs
Future bills could expand, reduce, or tighten these rules

🧾 Stay informed via NJ Legislature or the DGE site.

✔️ Never assume “free to play” = safe

Lots of sites still say “no purchase necessary.” That doesn’t protect them anymore.

If coins can be redeemed for prizes — it’s gambling
If you can mail in for entries — it’s still banned under A5447
If it looks like a sweepstakes casino, it probably is

🔎 Always ask: can I win something real? If yes, it’s a super clear no-go.

Final word: No more loopholes

New Jersey’s gaming laws are crystal clear now. If you want to play for money, you need to do it through a licensed operator. If you’re looking for something low-stakes and lighthearted, social casinos are your best bet.

Either way, know what you’re signing up for—and stay on the right side of the law.

New Jersey vs. neighboring states

Compare New Jersey’s sweepstakes rules and top sites with those of surrounding states.

Best NY sweepstakes casinos

Best PA sweepstakes casinos

Best DE sweepstakes casinos

FAQ: Playing sweepstakes casinos from within New Jersey

Is it now illegal to play sweepstakes casinos in New Jersey?

Yes, it’s completely illegal. In the middle of 2025, the state passed a new sweepstakes law (A5447) that bans prize-based sweepstakes casinos from operating in the state. Whether the site says “no purchase necessary” or you just use promo coins, the principle remains the same. If you can turn play into gift cards, cash, or anything with real value, it’s considered illegal gambling now.

I live in New Jersey, but I’m currently out of state. Can I still cash out from a sweepstakes site?

To qualify for the sweepstakes casino payout, you must be physically outside of New Jersey. Your device must show that you are not in your home state. Additionally, the state you are in cannot have a ban on sweepstakes casinos.

Could I use a VPN to get around the sweepstakes ban in New Jersey?

No, and we don’t recommend trying it. While a VPN may allow you to access the site, you could get in trouble if you try to withdraw funds or verify your location. If they catch you using a masked location, they can suspend your account, freeze your balance, or stop responding altogether. You won’t have any regulatory support because you weren’t supposed to be there in the first place.

What if I can access a sweepstakes casino even though I’m in New Jersey?

Just because a site gives you access doesn’t mean it’s legal. In this case, the site either willingly broke the law or unwittingly did so by not properly banning your state out of pure negligence.

What is A5447 and why does it matter when I want to play at NJ sweepstakes sites?

That’s the law that shut down sweepstakes casinos in New Jersey. It renders the entire model illegal, meaning the setup where you play with one type of coin but win with another. It doesn’t matter if they’re called sweeps coins, lucky tokens, or magic peanuts. If there’s a chance to win prizes, the entire setup is now banned.

Is New Jersey’s sweepstakes casino bill, A5196, relevant?

Bill A5196 is no longer relevant because lawmakers dropped it in April 2025. The bill aimed to establish a licensing system for sweepstakes casinos in New Jersey and permit them to reopen under proper oversight. Currently, there is no other proposal to legalize these sites. The ban is the rule.

Do I have to report a sweepstakes prize won in a state other than New Jersey to the IRS?

Yes, because it doesn’t matter where you win it. If you’re a U.S. resident and receive a payout of more than $600 in a calendar year, the site will send you a Form 1099. In fact, even if the payout is under $600, the money is still considered taxable income. You’re expected to report it, whether you bought coins or entered for free.

Other sources

Duane Morris LLP. (2025, January 16). New Jersey bill attempts to regulate certain social casino operators. Link
SigmaPlay. (2025, January 16). NJ bill cracks down on sweepstakes gaming, but there’s a catch. Link

About the Author

Renzo A. •

Content Writer

Renzo is one of the newest additions to the crew. With a extensive background in data gathering and with valuable insights on casinos, he’s your go to person for questions about the iGaming industry. He’s worked hard to develop his skill for discovering trends as well as crafting well put together reviews. In his spare time, Renzo is a crypto enthusiast/trader who like to explore the exciting and endless possibilities of blockchain technology.

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