Add New Jersey to the list of states that have banned sweepstakes casinos this year.
Gov. Phil Murphy signed A5447 on Friday afternoon. The bill passed the 45-day limit for a governor to act on it Thursday, but that deadline was technically pushed back to the first day the Assembly returned from their summer recess.
The Assembly is not scheduled to return until November, meaning sweepstakes casino operators could have had up to an additional 2.5 months if Murphy planned to let the bill go into law without a signature.
Instead, Murphy’s signature on A5447 means the bill goes into effect immediately.
A win for online casinos in tough summer
Banning sweepstakes casinos is clearly a positive for regulated online casino operators. The initial idea for sweeps was to tax and regulate them the same as those licensed online casinos, but this eliminates the concern of competition.
Online casino operators needed a win after they were included in a bill that increased taxes across multiple gaming sectors. Murphy signed a bill that increased the tax rates for online casino and online sports betting to 19.75%.
That rate was a compromise from the 25% Murphy suggested originally.
2025 tough on sweepstakes casinos
New Jersey is the fourth state to have a sweepstakes casinos ban signed by its governor.
Governors in Connecticut, Montana and Nevada have signed those bills.
Louisiana Gov. Jeff Landry vetoed the bill, saying the state’s gaming regulators could take action on illegal gambling without it. The Louisiana Gaming Control Board did just that, sending more than 40 cease-and-desist letters to sweepstakes operators and offshore sportsbooks.
Mississippi also took action through cease-and-desists.
Legislation in Arkansas, Florida and Maryland did not pass while a bill in California is making its way through the process.
