
On Thursday, the New Jersey Assembly Appropriations Committee recommended a bill that would add new restrictions to sweepstakes casinos for passage. If the bill passes and becomes law, it would be the first state to offer a legal real-money online casino plan to ban sweepstakes casinos.
New Jersey has such a massive profile in the industry. A move like that could send shockwaves throughout.

On June 19, the New Jersey Assembly Appropriations Committee voted 11-0 on A 5447. It did, however, come with an amendment.
The amendment would alter definitions in the bill to ensure that the target is online sweepstakes games that mimic or simulate casino-style games and/or sports betting.
It defines sweepstakes 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 bill would also allow the New Jersey Division of Gaming Enforcement to have the authority to impose penalties of $100,000 or more for individuals found to be violating this statute.
The bill includes exemptions, though, wich which are “ancillary to the purchase of food, non-alcoholic beverages, or other merchandise not exceeding $20 in value…provided,
However, that such other items of merchandise will not include coins, tokens, or online credits that have no value other than permitting sweepstakes entry or that can be exchanged for money or merchandise from the sweepstakes operator or an affiliated company.”
There's a companion bill, S 4282. Nothing has happened with that bill since May 29.
There have already been outlets to stop providing paid entries in New Jersey, including High 5 and Stake.us. These companies don't appear to be arguing about regulatory compliance.
However, their concern seems to be the influence New Jersey has as a state.
New Jersey is a massive player in the gambling space.
A lawsuit filed by the state led to PASPA being overturned in 2018, which paved the way for sports betting to become more widespread.
It also legalized online casino play in 2013.
While New Jersey hasn't banned sweepstakes casinos yet, more states, in addition to Montana, Nevada, and Connecticut, could.
New Jersey's passing a bill to ban sweepstakes casinos could lead to other states doing the same, leaving the sweepstakes casino industry in trouble.
We'll see how it continues to develop after the 11-0 vote.