New Jersey enacts ban on sweepstakes gambling and proxy betting
Governor Phil Murphy has signed legislation outlawing sweepstakes casinos and proxy betting, with new penalties for unlawful gambling operations.
Key points:
– Bill A-5447 makes sweepstakes gambling illegal in New Jersey
– Law introduces fines up to $250,000 and expands definitions of illegal gambling
– Follows recent operator withdrawals ahead of regulatory enforcement
New Jersey Governor Phil Murphy has signed Assembly Bill 5447 into law, formally prohibiting sweepstakes casinos, proxy sports betting and several related practices in the state.
The legislation, signed on 15 August, makes it unlawful to operate sweepstakes-based gambling in New Jersey, defining such activity as a promotional or marketing event offering prizes through a dual-currency system or equivalent mechanism. Exceptions are limited, applying only where free entry is possible and where paid entry is tied to small-value purchases such as food or non-alcoholic drinks.
The law also broadens definitions of unlawful gambling and introduces penalties for violations. First offences can attract fines of up to $100,000, with subsequent breaches rising to $250,000. It also gives regulators, including the Division of Gaming Enforcement, the authority to seek injunctive relief against illegal operators.
Good to know: Proxy betting of $1,000 or more is now specifically criminalised, alongside new prohibitions on using another person’s betting account and wagering with inside information
The legislation additionally expands rules around event manipulation to cover sports contests, with offences for bribery or fixing games. It also introduces new restrictions against unlicensed online gambling sites, described in the bill as “online gambling resorts.”
The Social and Promotional Games Association previously criticised the measure, claiming it would outlaw platforms that do not require purchase to play and are enjoyed responsibly by millions of adults.
Other industry advocates warned that broad definitions in the bill could drive liquidity into unregulated markets.
In July 2025, operator VGW confirmed it would withdraw its Chumba Casino and Luckyland Casino products from New Jersey ahead of the anticipated ban. The company has also exited New York and faced regulatory scrutiny in Mississippi and Delaware this year.
With the new law in effect, New Jersey becomes the first US state to formally ban sweepstakes casinos, reflecting a wider national trend of tightening oversight across alternative online gambling models.
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