A lawmaker in New Jersey has introduced a measure aimed at prohibiting sweepstakes after a previous legislative attempt to classify them as regulated gaming entities.
Assemblyman Clinton Calabrese has introduced Assembly Bill 5447, legislation that aims to ban sweepstakes casino wagering in the Garden State while establishing new penalties for illegal gambling operations and practices. Under A5447, the penalties are enforced by the New Jersey Division of Consumer Affairs and Division of Gaming Enforcement (DGE). A5547 awaits its first reading and consideration by state lawmakers.
Attempt to regulate sweeps in New Jersey
Calabrese has introduced the measure after attempting to create a regulatory framework for sweepstakes through his introduction of Assembly Bill 5196 earlier this year went nowhere.
A5547 does not offer a definition of sweepstakes casinos, but A5196 classifies sweepstakes casinos as regulated entities by providing a definition:
“Any platform available via an Internet website or mobile application that (1) provides participants with an opportunity to play authorized gambling games or provides an experience equivalent to, or with similar statistical odds of winning as an authorized gambling game, except that the game does not require any initial monetary investment on behalf of the participants to play and instead is played primarily with free currency; and (2) awards to participants at random, as a bundle with the purchase of free currency, or upon the completion of certain specified tasks, currency or promotional gaming credits which can be wagered on games and are redeemable for cash, prizes, or other things of value.”
The measure also considers the use of non-cash items to wager with sweepstakes casinos.
“An online sweepstakes casino may additionally offer tokens, coins, chips, credits, or other forms of currency for purchase or exchange that are directly redeemable for cash, prizes, or other things of value,” according to A5196.
Senate also considers sweeps measure
Calabrese’s bill is competing with a similar measure, Senate Bill 4109.
SB 4109, introduced by Sen. Joseph Cryan, designates sweepstakes casinos as internet gaming. The bill, referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee, also calls for sweepstakes licensing and taxation.
