New Jersey Anti-Sweeps Bill Reaches Assembly Floor

A bill prohibiting online sweepstakes casino play in New Jersey advanced out of committee Thursday and is, as of the start of this week, on second reading to be heard by the full Assembly.

A5447, sponsored by Assemblyperson Clinton Calabrese, was unanimously voted out of the Appropriations Committee by an 11-0 vote Thursday. It had previously advanced from the Tourism, Arts, and Gaming Committee by a 6-0 vote May 8.

Three states have enacted sweepstakes bans in the legislative calendar year: Nevada, Montana, and Connecticut. New York’s legislators passed similar legislation last Tuesday, and that bill is awaiting Gov. Kathy Hochul’s signature.

The Louisiana legislature also passed an anti-sweeps bill in unanimous fashion, but it was vetoed by Gov. Jeff Landry. He found the bill to be overreaching in scope and expressed confidence in the state’s gaming control board to combat unregulated online gaming.

Little in the way of resistance

While Appropriations Chair and Assemblywoman Lisa Swain noted there were testimony slips for the bill, she did not specify the amount of slips in favor or against Calabrese’s bill. Additionally, no one provided testimony on the subject.

Calabrese introduced legislation in January that would have regulated online casino sweepstakes similar to how New Jersey regulates online casino gaming. While he filed A5447 in March, he did not formally withdraw the other bill from the lower chamber until April.

Both the Attorney General’s Office and the Sports Betting Alliance gave testimony in support of the current bill before the Tourism, Arts, and Gaming Committee.

SPGA urging Hochul veto

The Social and Promotional Gaming Association (SPGA) is urging Hochul to veto New York’s A6745, citing concerns about the potential overreach of the bill. The SPGA claims the bill would expose “entrepreneurs, software vendors, and even venture capital investors to criminal liability for funding or building free-to-play digital entertainment and rewards platforms.”

The group also said the bill, if passed, has the potential to ban traditional promotional sweepstakes games run by companies such as Starbucks and Marriott.

A veto by Hochul, though, seems a tall ask considering the bill unanimously passed in the Assembly, and the actual bill passed was sponsored by state Sen. Joseph Addabbo, who is the upper chamber’s chair of the Committee on Racing, Gaming and Wagering.