The Social Gaming Leadership Alliance (SGLA), joined by key partners including VGW, B-Two Operations, and the World Poker Tour, submitted testimony last week in opposition to New Jersey bills A5447 and S4282, which would ban free-to-play online sweepstakes casinos and social games that use sweepstakes promotional frameworks.
A5447 Expands Definition Of Gambling, Establishes New Penalties
S4282 was substituted by A5447 on June 30. A5447 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.”
“Sweepstakes” is also 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.”
In addition, A5447 establishes new penalties for unlawful gambling practices. 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.
“These proposals seek to eliminate a popular form of digital entertainment enjoyed by millions of Americans and based on a model used legally for decades by trusted consumer brands,” said Jeff Duncan SGLA Executive Director and former Congressman.
“This is not gambling — it’s marketing. Our partners operate free-to-play games with strong consumer protections and legally compliant promotional sweepstakes structures.”
Duncan Says A5447, S4282 Are Built On Flawed Definitions
In written testimony submitted to the New Jersey Legislature, SGLA emphasized the economic and regulatory opportunity at hand, which would cease to exist if sweepstakes are outlawed.
“We welcome the opportunity to work with the New Jersey legislature on common-sense legislation that creates a robust regulatory framework, prioritizes consumer protection, and offers new revenue for the state,” said Duncan.
“But A5447 and S4282 are the wrong approach. These bills are built on flawed definitions and would have broad, unintended consequences — impacting everything from digital games to local retail promotions.”
SGLA Has Strict Consumer Protections In Place Across Its Member Platforms
The SGLA also highlighted the vigorous consumer protections already in place across its member platforms, including strict age verification, anti-money laundering procedures, self-exclusion options, and partnerships with major payment networks that enforce strong compliance standards.
“Our partners meet or exceed the expectations set by top-tier financial and technology companies,” added Duncan. “This is a responsible industry committed to compliance, innovation, and consumer choice. We’re not asking to be exempt from regulation — we’re asking for the chance to be part of the conversation.”
In its press release, the SGLA went on to thank Senators Carmen Amato, Declan O’Scanlon, Douglas Steinhardt, and Michael Testa for voting against moving the aforementioned bills forward.
The SGLA urges New Jersey lawmakers to “pause consideration of the bills and work collaboratively with industry stakeholders to develop a regulatory framework that protects consumers without stifling innovation.”