The New Jersey Senate State Government, Wagering, Tourism, & Historic Preservation Committee approved Assemblyman Clinton Calabrese’s Assembly Bill 5447 last month, and the measure was recently reported out of the Assembly’s Appropriations Committee for a second reading.
New Jersey Assembly Bill 5447 Would Outlaw Sweepstakes Casinos
On June 19, the New Jersey Assembly Appropriations Committee voted 11-0 to report out favorably AB 5447 with an amendment from the committee. The amendment expands definitions in the bill to ensure the measure prohibits the “dual currency system of payment” and online sweepstakes games that simulate casino-style games.
“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.”
AB 5447 Establishes New Penalties For Unlawful Gambling
Any person or entity found in violation of AB 5447 would 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.
However, AB 5447 does create exemptions to the sweepstakes prohibition, if:
- There exists a method of entry to participate in the sweepstakes at no cost to the participant;
- Any method of entry that is not free to the participant is ancillary to the purchase of food, non-alcoholic beverages, or other merchandise not exceeding $20 in value or such other amount to be determined by the Director of the Division of Consumer Affairs in the Department of Law and Public Safety;
- Items of merchandise will not include coins, tokens, or online credits that have no value other than permitting sweepstakes entry or that are able to be exchanged for money or merchandise from the sweepstakes operator or an affiliated company; and
- Sweepstakes entry form or the website or application used to enter an online or telephone sweepstakes clearly discloses to participants: the rules of the sweepstakes and the odds of a winning any and all prizes.
AB 5447 also has a Senate companion, SB 4282, which has not seen any movement since May 29. Other states like Montana and Connecticut have already outlawed sweepstakes casinos this year.
Another bill is also only a governor’s signature away from becoming law in New York.