New Jersey Governor Signs Bill Banning Sweepstakes Gambling
New Jersey Governor Phil Murphy has signed a bill banning sweepstakes gambling. Violators face fines of up to $250,000.
What the New Law Means
On August 18, 2025, Governor Phil Murphy signed Assembly Bill 5447 (A5447), which introduces a complete ban on dual-currency sweepstakes games in New Jersey.
The bill prohibits any type of online games that use a dual-currency system and mimic casinos or sports betting. Exceptions are made for promotions tied to the purchase of food, soft drinks, and branded merchandise.
Key Provisions of A5447
- Dual-currency sweepstakes that simulate gambling are banned.
- Advertising and promotion of such services are prohibited.
- Violators face fines of up to $25,000 per violation.
- Companies must return unlawfully obtained funds to customers.
- The use of insider information for betting and the practice of “bearding” — playing through other people’s accounts — is prohibited.
Enforcement and Penalties
Enforcement is handled by the Division of Gaming Enforcement and the Division of Consumer Affairs. Failure to comply with an order to cease operations may result in fines of up to $250,000.
Efforts to Prevent the Ban
Adam Pliska, President & CEO of the World Poker Tour, urged lawmakers not to enact the ban and instead regulate sweepstakes as a way to generate state revenue. However, the proposal failed to gain support.
Related Legislative Measures
Ban on College Partnerships
Earlier in 2025, Governor Murphy signed Assembly Bill 4113 (A4113), prohibiting New Jersey colleges and universities from forming partnerships with sports betting operators. The restriction applies to athletic departments, media, and student booster clubs.
The law does not apply to university-affiliated foundations, provided they do not engage in direct student-targeted advertising.
Debating Further Restrictions
Lawmakers are also considering Senate Bill 3080, which would ban bets on individual college athlete performance (“college player props”). In June, the Senate committee voted unanimously in favor of the bill.
How New Jersey Compares to Other States
New Jersey is now the third U.S. state to officially outlaw online sweepstakes gambling. Connecticut and Montana passed similar measures earlier in 2025:
| State | Date Passed | Governor | Bill |
|---|---|---|---|
| Connecticut | June 2025 | Ned Lamont | Ban Bill (146-0 vote in House) |
| Montana | 2025 | Greg Gianforte | Senate Bill 555 |
| New Jersey | August 2025 | Phil Murphy | Assembly Bill 5447 |
Conclusion
The passage of A5447 positions New Jersey as a leading state in tightening online gambling regulations. Sweepstakes with dual-currency systems, their advertising, and workarounds are now prohibited.
Additional restrictions on sports betting and university partnerships with gambling operators may follow in the near future.