New Jersey has become the fifth U.S. state to enact a statutory ban on online sweepstakes casinos following the swift passage of Assembly Bill 5447. On June 30, the legislation was approved by the Assembly in a 69-10-1 vote and later passed in the Senate by a 34-5 margin, both with minimal discussion.

According to SBC Americas, the bill now awaits Governor Phil Murphy’s signature, which would put the ban into immediate effect. Once signed, the law will prohibit sweepstakes-based online wagering models and impose strict penalties on violators. The Division of Consumer Affairs and the Division of Gaming Enforcement will oversee enforcement.

Law Targets Dual-Currency Models and Promotions

A5447 specifically targets sweepstakes casinos using a dual-currency system, where one currency is earned and another is used for prize redemption, common in platforms like Global Poker and ClubWPT Gold. The legislation includes carve-outs for legal promotional activities such as fast food contests, but criminalizes both the operation and promotion of illegal sweepstakes gambling in the state.

That provision extends to affiliate marketers and influencers, marking a significant development in enforcement scope. Promotion of unlicensed sweepstakes products will now carry criminal penalties.

ClubWPT Gold, launched in early 2025 and modeled similarly to VGW’s Global Poker, was one such platform affected. World Poker Tour (WPT) President and CEO Adam Pliska made a late appeal to lawmakers during a Senate Budget and Appropriations Committee hearing last week.

Pliska, who flew in on short notice to speak, told lawmakers: “We have never had an issue. We have never had a lawsuit. We’ve never had a cease and desist.” He argued for regulation rather than prohibition, suggesting that applying a sales tax on sweep coins—like other states have done—could benefit the state’s revenue.

He also noted that WPT spends millions annually producing its televised poker events, which have historically supported casino tourism, including partnerships with venues like Atlantic City’s Borgata.

Legislation Expands to Include Bearding and Insider Betting Prohibitions

Beyond sweepstakes, A5447 contains provisions that directly address gambling integrity and illegal betting practices. The bill introduces new language criminalizing “bearding”—the act of placing wagers through another person’s account to evade detection or limits. If bearding results in more than $75,000 in profits, it is classified as a second-degree felony.

It also criminalizes the use of insider information to place sports bets and raises penalties for bribing athletes to influence sporting outcomes. The level of criminal classification depends on the value of the bribe accepted.

These changes represent an escalation in New Jersey’s stance on unlawful gaming, pushing beyond regulatory enforcement into direct criminal prosecution.

Sweepstakes Ban Accompanied by iGaming Tax Increase

Alongside the sweepstakes ban, the Senate also voted 25-14 to raise New Jersey’s online gaming and mobile sports betting tax rates to 19.75%. Previously, iGaming was taxed at 13%, and mobile sports betting at 15%.

The tax hike aligns New Jersey with other U.S. states increasing their gambling levies. Illinois, for example, recently passed a bill imposing up to $0.50 in taxes per sports wager, prompting platforms like FanDuel and DraftKings to introduce user transaction fees.

The new tax measure and the sweepstakes ban together signal a significant recalibration of New Jersey’s gaming laws, reinforcing regulatory authority while aiming to ensure economic benefit from all forms of legal online gambling.