New Jersey lawmakers have overwhelmingly approved legislation banning online sweepstakes casinos while simultaneously increasing tax rates on digital gambling operators. Both bills now head to Governor Phil Murphy’s desk for final approval.
Fast-Tracked Votes Target Unlicensed Gambling
In a swift and uncontentious process, the Assembly passed Bill A5547 by a 69-10-1 vote, and the Senate followed minutes later with a 34-5 margin. The bill outlaws the use of dual-currency systems in online sweepstakes models that award prizes through purchases of virtual coins—a popular format used by several platforms operating in legal grey areas.
Once signed, the law will criminalize not only the operation of such platforms but also their promotion by influencers and affiliates. Oversight will fall to the Division of Gaming Enforcement and the Department of Consumer Protection.
New Jersey will become the sixth state to take legislative action against sweepstakes casinos. While Louisiana’s governor vetoed a similar bill, measures have already passed in Connecticut and Montana, with New York and Nevada pending gubernatorial action.
WPT’s Plea Rejected
World Poker Tour (WPT) President Adam Pliska made a personal appeal before the Senate Budget Committee last week, defending the legality and track record of WPT’s sweepstakes products, ClubWPT and the newly launched ClubWPT Gold.
“We have never had an issue. We have never had a lawsuit. We’ve never had a cease and desist,” Pliska said. He proposed taxing virtual coin sales and emphasized the promotional value WPT brings to casinos like Atlantic City’s Borgata.
Pliska argued that ClubWPT Gold, which uses a dual-currency model similar to Global Poker and is active in 45 states, promotes poker rather than casino-style games. Still, lawmakers moved forward with the bill.
Broader Gambling Reforms and Tax Increases
In addition to the sweeps ban, legislators passed A5803, a budget-related bill raising tax rates on online gambling operators. Sportsbooks, online casinos, and daily fantasy sports (DFS) companies will now face a uniform tax rate of 19.75%—up from 13%, 15%, and 10.5%, respectively.
Governor Murphy had initially proposed a 25% tax rate, but lawmakers scaled it back following industry opposition. “We took a scalpel to some of the governor’s proposed revenue raisers,” said Senate Budget Committee Chair Paul Sarlo.
Bill Also Criminalizes Proxy Betting, Insider Wagering
A5547 extends beyond sweepstakes, addressing betting-related misconduct. It criminalizes insider betting and proxy betting—where one person uses another’s gaming account to place wagers. If proxy betting leads to over $75,000 in gains, it becomes a second-degree crime.
Critics say the new rules could push bettors to unregulated platforms. Joe Brennan Jr., a board member of American Bettors’ Voice, argued that the bill’s vague language could even penalize public sports commentary. “The language is so broad, it could make @JasonKelce guilty of ‘swindling & cheating’ when he gives his pick,” Brennan posted on X.
Industry Pushback Continues
The Social and Promotional Games Association (SPGA) urged Governor Murphy to veto the ban, calling it a step backward. “Assembly Bill 5447 seeks to outlaw promotional sweepstakes platforms that are already legal, do not require purchase to play, and are enjoyed responsibly by millions,” SPGA said in a statement.
With Murphy’s signature, New Jersey would join a growing number of states taking tougher stances on sweepstakes models while increasing the cost of doing business for licensed online gambling platforms.
Source:
“New Jersey the 5th state to statutorily ban online sweepstakes casinos”, x.com, “Daniel Wallach”. Jun 30, 2025
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