New Jersey bans sweepstakes casinos as Gov. Murphy signs A5447

New Jersey Gov. Phil Murphy signed Assembly Bill 5447 on Aug. 15, 2025, outlawing dual-currency sweepstakes casinos with immediate effect. The law treats as illegal gambling any promotional game that awards prizes through a dual-currency system letting participants exchange a currency for a prize.

Operating an unlicensed "online gambling resort" is a third-degree crime under the law, and sweepstakes violations carry fines of $100,000 for a first offense and $250,000 for each subsequent one. Regulators can also go to court for injunctions to shut sweepstakes operations down.

Traditional promotional sweepstakes remain legal if they offer free entry, limit any paid entry to food, non-alcoholic drinks or non-coin merchandise costing less than $20, and give free and paid entries the same odds. The same law also targets proxy betting, fixing sports events and betting on inside information.

The Social and Promotional Games Association had opposed the bill, arguing that it took aim at promotional platforms that are already legal and played responsibly. Many large sweepstakes brands had stopped serving New Jersey before the signing.