The Social and Promotional Games Association (SPGA) strongly urges New Jersey Gov. Phil Murphy to reject Assembly Bill 5447, which would expand the gambling definition to ensure the prohibition of the “dual currency system of payment” and online sweepstakes casinos that offer casino-style games.
The bill passed both houses on June 30 and now awaits Murphy’s signature. If the measure is signed into law, New Jersey would become the first US state with a real-money online casino industry to outlaw sweeps operators.
SPGA Says Anti-Sweepstakes Bill Undermines Innovation
Assembly Bill 5447 seeks to outlaw promotional sweepstakes platforms that are already legal and do not require purchase to play. The platforms use the same promotional frameworks as companies like Microsoft and Marriott, and the sites are “already equipped with age-gating, geolocation, and robust fraud prevention,” the SPGA said.
“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.”
In addition, the SPGA argues that AB 5447 was “driven by powerful casino lobbyists with a financial stake in eliminating lawful alternatives” and “that’s not consumer protection, that’s protectionism.”
“Governor Murphy can stop this misguided effort. We urge him to stand with consumers and veto Assembly Bill 5447 before it strips away choice and chills innovation in the Garden State,” the SPGA added.
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 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 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.
Other states like Montana and Connecticut have already outlawed sweepstakes casinos this year. Another bill in New York is also only a governor’s signature away from becoming law.