New Jersey Gov. Phil Murphy signed Assembly Bill 5447 into law on Friday, Aug. 15, officially enacting an immediate ban on sweepstakes casinos in the Garden State.
New Jersey Sweepstakes Bill Would Have Become Law Without Signature
Had Murphy not signed or vetoed the proposal by last Thursday, the measure would have become law automatically, as New Jersey gives governors 45 days to act on a bill before it passes without a signature.
The bill to ban sweepstakes casinos was on Murphy’s desk on July 1 following Senate approval on June 30.
By contrast, Louisiana Gov. Jeff Landry vetoed a similar bill in June, stating it was unnecessary because the Attorney General’s office and the Louisiana Gaming Control Board (LGCB) is already taking the necessary steps to shut down sweeps platforms.
Within days of Landry’s veto, Attorney General Liz Murrill assisted the LGCB in issuing more than 40 cease-and-desist letters to online sweepstakes casinos and social casinos.
“These actions send a clear message,” LGCB Chair Christopher Hebert said in a release. “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry. We will continue to use every enforcement tool available to protect the public and uphold the law.”
AB 5447 Expands Definition Of Gambling
In AB 5447, “sweepstakes” is defined 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.”
The measure also expands the definition of “gambling” within the criminal statutes to include “the buying, selling, or trading something of value upon an agreement or understanding that the actor will receive something of value in the event of a certain outcome in a contest of chance.”
Any person or entity found in violation of AB 5447 will now be subject to a civil penalty of not more than $100,000 for the first offense and not more than $250,000 for the second and each subsequent offense.
The Social and Promotional Games Association (SPGA) strongly urged Murphy to reject the measure back in June, calling it a “direct contradiction to the sensible regulatory framework introduced” by Assemblyman Clinton Calabrese.
“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.”