New Jersey Confirms Sweeps Casino Ban
Governor Phil Murphy has signed off on New Jersey’s ban on sweepstakes casinos, with the new law now in immediate effect.
The move brings the Garden State into line with Montana, Connecticut, and Nevada, all of which passed similar legislation this year. While those states won’t begin enforcement until October, New Jersey has handed authority to the Attorney General right away, setting the stage for operators to leave quickly rather than face heavy penalties.
Heavy Penalties in Place
The legislation sets fines at $100,000 for a first offense and $250,000 for each subsequent violation. Each day a casino continues to operate illegally is counted as a separate offense. The law also makes company officers, employees, and agents personally liable for breaches.
Operators Begin Withdrawal
A number of the top sweepstakes casino operators moved early. McLuck, Stake.us, and High 5 Casino had already pulled out ahead of the decision, while Chumba Casino has restricted New Jersey players to Gold Coins free play only. Pure social casinos remain permitted, but many of the leading names in the sweeps sector appear to be taking no chances and are blocking access entirely.
From Regulation to Ban
The bill, A5447, passed through the legislature in June before reaching the governor’s desk. Its arrival closes the door on what had briefly looked like a ne. Earlier this year, Assemblyman Clinton Calabrese introduced A5196, which sought to regulate sweepstakes casinos and bring them into the legal framework. That measure was quickly withdrawn and replaced with a full ban, which has now come into force.
Wider National Context
New Jersey’s action adds momentum to a growing nationwide shift. New York has active legislation waiting for the governor’s signature and has been issuing cease-and-desist orders under existing laws. Nevada and Louisiana are using existing laws to go after sweeps casinos and this is an ongoing drama that is far from over.
