New Jersey Assembly Proposes Bill to Regulate Sweepstakes Gaming

A Whole New Approach to Sweepstakes Gaming

To put it in layman terms, the assembly Bill 5196 wants to officially recognize sweepstakes-style online casinos — you know, those platforms that have been riding a wave of popularity, particularly because of their often more accessible gaming models. Sweepstakes sites rely on a dual-currency system involving play-money coins and ‘sweep’ coins, which can be exchanged for cash or prizes. It’s a clever loophole that has allowed them to operate not just across the U.S. but globally while attracting a growing player base.

As sweepstakes sites continue to grab an increasingly large share of the gambling market, traditional online operators have sounded the alarm, pushing for a what they would characterize as a much needed crackdown. Their argument is that these platforms are operating in a regulatory gray area, creating a host of potential issues from consumer protection to underage gambling.

Enter Assemblyman Calabrese, whose legislation recognizes the need for oversight. “Sweepstakes casinos have operated in a regulatory gray area, which has led to significant challenges,” he stated, pointing out the risks that come from a lack of regulation.

So, one of the key goals of the bill is to create a structured approach that would bring these operators into compliance with state regulations. Calabrese believes that by licensing sweepstakes sites, New Jersey can address concerns while also ensuring that the state can benefit from safe and responsible gaming practices. With the current sweepstakes operators already offering games similar to those regulated in New Jersey, much of the necessary framework is, in fact, already in place.

Not even a month into the news, the proposal has already caught the attention of the Social and Promotional Games Association (SPGA), a recently formed organization that represents several sweepstakes operators across the country. They’ve made it clear that they fully back Calabrese’s initiative. “The SPGA welcomes Assemblyman Calabrese’s bill,” the group declared, emphasizing that they advocate for clear regulations that promote a transparent and responsible gaming environment.

Of course, it’s worth noting that Calabrese’s legislation will almost certainly face at least some pushback. Established online operators who’ve already invested heavily in New Jersey’s regulated market may see this as a threat to their business. After all, bringing the sweepstakes industry into the official fold could mean new competition for them in a space they’ve long dominated. Then again, there’s always a chance that that the two sides find common ground if the end result turns out to be greater consumer protection.

As for what lies ahead, Assembly Bill 5196 is currently resting easy in the New Jersey Assembly’s Tourism, Gaming and the Arts Committee. From there, the bill will need to navigate both houses of the state legislature and ultimately get the signature of Governor Phil Murphy.

If it all goes well, this bill could pave the way for a regulated sweepstakes gaming in New Jersey – something currently unheard of in the US.

For now, the poker community will be watching closely as this story unfolds. Regardless of whether Assembly Bill 5196 ignites a new gaming wave in the state or gets pushback from established operators, one thing’s for sure: the stakes have never been higher in the world of sweepstakes gambling!

Nationwide Pressure on Sweepstakes Gaming in the US

Calabrese’s proposal in New Jersey isn’t the only shake-up for sweepstakes-style gaming in the U.S. Over in Massachusetts, VGW Holdings US — the company behind Global Poker, Chumba Casino, and Luckyland Slots — is in hot water with a class-action lawsuit. The case, filed in Suffolk County, accuses VGW of skirting state gambling laws through its dual-currency system.

The lawsuit argues that this clever workaround essentially makes VGW’s platforms real-money gambling sites disguised as sweepstakes. While Global Poker isn’t a direct target yet, the legal pressure could expand, potentially impacting how these platforms operate nationwide. With VGW already facing scrutiny in other states and restricting access in places like Michigan and Nevada, it’s clear that the sweepstakes gaming is is in the hot seat, at least in the US market.