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New Jersey lawmakers are reopening the sweepstakes casino conversation after last year ban. The focus now shifts from prohibition to structure, with a proposal that would pull certain platforms into the existing internet gaming system under state oversight.
Good to Know
- A new bill targets dual currency sweepstakes platforms rather than a full ban
- Licensed operators would need a casino partner and a state permit
- New Jersey already holds enforcement authority and penalty power
New Bill Targets Licensing Model for Sweepstakes Casinos
Joseph Cryan has introduced S1500, a proposal that would legalize and regulate dual currency sweepstakes casinos in New Jersey. The bill seeks to place those platforms inside the same regulatory framework used by legal internet gaming operators in the state.
Under S1500, a sweepstakes casino would need to secure a license, partner with an existing casino licensee, and obtain a gaming permit. The bill now sits with the Senate State Government, Wagering, Tourism and Historic Preservation Committee and awaits technical review by legal counsel.
The proposal marks a second attempt by Cryan to regulate sweepstakes gaming. A similar bill introduced in 2025 stalled in committee. A companion measure appeared in the Assembly last January and received backing from the Social and Promotional Games Association, though lawmakers later withdrew it from consideration.
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S1500 lays out a detailed definition of an online sweepstakes casino. The bill describes platforms that offer games with odds similar to authorized gambling games but rely primarily on free currency. Players receive promotional credits through purchases of free currency or through specific tasks, with those credits redeemable for cash, prizes, or other items of value. The bill also allows the sale or exchange of tokens or coins that convert directly into cash or prizes. Lawmakers also amended sweepstakes tokens into existing provisions covering promotional gaming credits.
How the Proposal Fits With Last Year Ban
New Jersey already moved against sweepstakes casinos in 2025. Phil Murphy signed A5447 into law in August, placing the state among several that outlawed dual currency gaming models.
The statute bars sweepstakes operators that run promotional contests or games where something of value becomes available through systems that allow currency exchange into prizes or equivalents. The language applies across online and in person formats.
Enforcement authority sits with the New Jersey Division of Gaming Enforcement. The agency can block platforms from operating and impose fines of $100,000 for a first violation and $250,000 for repeat offenses.
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S1500 takes a different route. Instead of banning the activity outright, the bill attempts to convert certain sweepstakes platforms into regulated internet gaming participants, provided they meet licensing, partnership, and compliance requirements.
FAQ
What does S1500 aim to change
The bill would legalize and regulate dual currency sweepstakes casinos instead of banning them.
Would sweepstakes operators need casino partners
Yes. Licensed operators would need to partner with a New Jersey casino licensee and hold a gaming permit.
Are sweepstakes casinos currently allowed in New Jersey
No. A law enacted in 2025 prohibits dual currency sweepstakes gaming and authorizes enforcement and fines.
The post New Jersey Reopens Sweepstakes Casino Debate appeared first on iGaming.org.