New Jersey is on the verge of outlawing sweepstakes casinos, as the Assembly Tourism, Gaming and the Arts Committee advanced bill A5447 to ban the gaming platforms on Thursday.
New Jersey Bill A5447 Would Increase Criminal Penalties
Sponsored by Rep. Clinton Calabrese, the legislation targets sites that use virtual currency for cash prizes.
A5447 calls for increased penalties of up to $100,000 for the first offense, while repeat offenders would be subject to fines of not more than $250,000.
The bill defines sweepstakes as:
“A promotional, advertising, or marketing event, contest, or game, whether played online or in-person, in which something of value, such as a prize or prize equivalent, is awarded, either directly or indirectly through means such as a dual-currency system of payment that allows a participant to exchange the currency for a prize or prize equivalent.”
If passed, the measure would also authorize the Division of Consumer Affairs and the Division of Gaming Enforcement to enforce these regulations.
States like Pennsylvania and New York are discussing bills like the one in New Jersey. However, similar bills were recently rejected in Arkansas, Maryland, and Mississippi.
Sweepstakes Sites Must Disclose Odds Of Winning?
In April, New Jersey Gov. Phil Murphy announced the release of the Responsible Gaming Task Force’s report to address problem gambling and promote responsible gaming in the Garden State.
The 109-page “Report to the Governor on Responsible Gaming,” dated March 31, outlines the task force’s findings and recommendations for combating problem gambling and promoting responsible gaming.
On page 38, the report mentions sweepstakes under “unregulated areas.” It reads, “the Sofis Report found that 28% of New Jerseyans have reported engaging in one or more forms of unregulated or illicit gambling in the past 24 months. These include participating in sweepstakes (purchasing coins for cash prizes)…”
The report clarifies on page 39 that sweepstakes must be “free to enter, and if there are alternative methods of a paid entry to win, the paid method of entry has the same odds of winning a prize as the free entry method.” It states that “federal law also requires that the odds of winning a prize must be disclosed.”
Unfortunately for sweeps players, the Responsible Gaming Task Force endorses A5447.