The New Jersey legislature became the sixth state to prohibit sweepstakes casino operators Monday.
NJ Senate passed A5447 Monday afternoon, a bill that prohibits sweepstakes casino operators, 34-5. It now heads to Gov. Phil Murphy for a signature.
Five other state legislatures have passed similar legislation. In Louisiana, Gov. Jeff Landry vetoed the bill.
NJ sweepstakes casino bill
Lawmakers introduced sweeps prohibition bills in both the Senate and Assembly earlier this session. The Assembly passed A 5447, 69-10, earlier this month.
The bill outlaws “sweepstakes model of wagering” and establishes new penalties for the industry.
It also directs the Division of Consumer Affairs and Enforcement to enforce penalties for violations.
Sweepstakes casino organization responds
Following the NJ passage, the Social and Promotional Games Association released a statement to urge Murphy to reject the legislation. The association said the bill was rushed to “appease entrenched casino interests.”
“Governor Murphy has an opportunity to do what the Legislature would not—listen to facts, not fear,” said a spokesperson for the SPGA. “This bill doesn’t just mischaracterize an entire industry, it ignores data, undermines innovation, and puts New Jersey’s reputation as a forward-thinking leader in tech and entertainment at risk.”
The SPGA said the legislation could also apply to promotional platforms from companies like Marriott and Microsoft.
Sweeps map shrinks
NJ is the sixth state to see its legislators vote to prohibit sweepstakes casino operators:
- Connecticut
- Louisiana
- Montana
- Nevada
- New York
Landry vetoed the bill in Louisiana because he said the state already had the power to enforce gambling rules. Some states, like Maryland, Florida and Arkansas, saw legislation stall out.
State crackdowns
While several state legislatures prohibited sweepstakes operators, other regulators have sent dozens of cease-and-desist letters. That now also includes Louisiana, where the top regulator sent more than 40 earlier this month.
In Mississippi, where a sweeps prohibition bill died after getting caught up in sports betting expansion legislation, regulators also sent stop notices.
Michigan has sent several dozen cease-and-desist letters, while Arizona recently sent out its second wave. Prior to the New York legislature’s passage of prohibition legislation, the state’s attorney general ordered multiple operators to leave the state.
California sweepstakes casino news
Earlier this month, Assemblymember Avelino Valencia introduced sweepstakes casino prohibition bill in California. It has backing from California tribes, which hold gambling exclusivity in the Golden State.
The legislation has been met with disapproval from multiple sweeps trade associations.
Also in California, Atty. Gen. Rob Bonta is expected to announce a ban on DFS contests soon as well.
