New Jersey Bans Sweepstakes Casinos Plus Record iGaming Profits
New Jersey Governor Phil Murphy has signed bills A5447 and S4282 into law, making the Garden State the fourth to prohibit the operation of sweepstakes casinos.
The other states that have enacted similar laws are Nevada, Montana, and Connecticut.
New Jersey is the second-highest gambling earner, after Nevada. In 2011, NJ became the first state to allow regulated online casinos to operate. A year later, sports betting was effectively legalized.
Today, more than 30 online casinos are regulated for New Jersey players, and the state continues to lead the way in online gambling innovation and regulation. However, its latest push for sweepstakes prohibition took a meandering path.
The Path To Sweepstakes Prohibition
In January, Assemblyman Clinton Calabrese submitted proposals to regulate sweepstakes casinos. The proposal would have licensed and taxed websites in much the same way as traditional online casinos.
While the Social and Promotional Games Association welcomed the move, Calabrese submitted bill A5447 in March, which would completely prohibit casinos that have previously operated in a regulatory grey area.
He also withdrew the initial submission to license sweepstakes sites on the back of that proposal.
The new bill gained considerable support as it progressed through the Houses, culminating in its signing into law on Aug. 15.
Social Gaming Leadership Alliance Executive Director Jeff Duncan said: "This law is a textbook example of government overreach that strips away entertainment choices from adults who should be free to make decisions about their own entertainment."
State Gambling Figures
Meanwhile, the state posted monthly financial figures relating to its gambling industry. The statistics show that online casinos and substantial in-person gambling revenue are recorded, although sports betting figures did dip slightly.
Online casinos posted $247.3M of revenue, beating the previous record of $246.8M, set in May. July’s figures showed an annual increase of 26.6%, bringing year-to-date revenue to $1.63B, a yearly increase of 23.3%.
In-person revenue was slightly higher than online casino revenue, at $284.1M for July. Physical casinos outperformed their online counterparts and showed a 4.3% annual increase.
The state's physical casinos' total revenue for the year's first seven months is $1.66B.
While many physical casinos still struggle to meet pre-pandemic levels, the state’s two new casinos—Hard Rock Hotel & Casino Atlantic City and Ocean Casino Resort—continue to show gains.
At the start of the year, total gambling revenue reached $3.92B, the strongest annual performance on record.
Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality, and Tourism, said the results show that online and offline casinos can coexist profitably.
She also stated: "This is especially true in the summer months when it is hard to compete with all that Atlantic City’s beach and Boardwalk have to offer."
