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New Jersey has officially taken a strong step against online sweepstakes casinos. On June 30, state lawmakers passed a new law (Assembly Bill 5447) that will ban these platforms. The bill easily passed in both the Assembly (69–10) and the Senate (34–5). Now, it just needs the signature of Governor Phil Murphy to become law. Once signed, the ban will start right away.
This move makes New Jersey the fifth state in the U.S. to pass such a law. The goal is to stop gambling platforms that work outside of traditional casino rules and to tighten control over who can promote or run them.
What Will This New Law Do?
The law focuses on a type of online gambling where players use two kinds of currency. One type is earned through gameplay or purchases, and the other is used to win real money or prizes. Websites like Global Poker and ClubWPT Gold use this model. Under the new law, these systems will no longer be allowed.
It also goes further than just banning operations. Anyone promoting these illegal sweepstakes casinos like social media influencers or affiliate marketers can face criminal charges. This is a big change and shows how seriously the state is treating the issue.
The only exceptions will be for legal sweepstakes, like fast food contests and giveaways. But if it involves real gambling under the sweepstakes model, it will now be a crime in New Jersey.
WPT Tried to Push Back
The World Poker Tour (WPT), which runs ClubWPT Gold, tried to stop the bill. Their CEO, Adam Pliska, came to New Jersey to speak in front of lawmakers. He said their platform has never had legal trouble and asked lawmakers to regulate instead of ban it.
Pliska suggested the state could charge sales tax on sweep coins, like other states have done, to raise money. He also said the WPT helps boost casino tourism and invests millions in poker events, especially in places like Atlantic City.
Despite his efforts, the lawmakers chose to move forward with the ban.
More Than Just Sweepstakes: New Rules Against Cheating in Gambling
The new law also brings in strong rules against cheating in betting. It makes “bearding” when someone places a bet using another person’s account a crime. If this leads to profits over $75,000, it becomes a serious felony.
There are also rules against using secret information to place bets or trying to bribe players to fix the outcome of sports games. The punishment depends on how much money is involved.
These changes show New Jersey is not just updating its laws it’s taking a firm stand on keeping gambling fair and honest.
Online Gambling Tax Rates Are Going Up Too
Alongside the sweepstakes ban, lawmakers also voted to raise taxes on online gambling and sports betting. Here’s what’s changing:
- Online casino gaming tax: From 13% to 19.75%
- Mobile sports betting tax: From 15% to 19.75%
This puts New Jersey in line with other states that are raising gambling taxes. For example, Illinois recently added up to $0.50 tax per sports bet, causing big betting platforms to charge new transaction fees to users.
What This Means for New Jersey’s Gambling Market
Together, the sweepstakes ban and the new tax rates mark a major shift in New Jersey’s approach to online gambling. The state wants to:
- Protect consumers from illegal gambling
- Stop cheating and insider betting
- Make sure legal gambling brings money into the state
These changes could also push other states to follow New Jersey’s lead, especially if the new tax revenue brings in more funds for public services.
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