New Jersey Lawmaker Now Pushing Sweepstakes Ban

• New Jersey Assemblyman Clinton Calabrese (D-36) introduced legislation to prohibit sweepstakes wagering
• Calabrese formerly introduced legislation in January to regulate the form of gaming
• New Jersey is the latest state to examine a potential ban on sweepstakes

Talk about a change of heart.

New Jersey Assemblyman Clinton Calabrese (D-36) recently introduced bill A5447 to ban the sweepstakes model of gambling in the Garden State.

However, this comes just two months after the lawmaker introduced a piece of legislation to regulate and tax the form of gaming in New Jersey.

Prohibition Instead of Regulation

Details on Calabrese’s bill have yet to be revealed, but its summary makes its intentions very clear.

“Prohibits sweepstakes model of wagering; establishes new penalties for unlawful gambling operations and practices; directs Division of Consumer Affairs and Division of Gaming Enforcement to enforce penalties.”

If signed into law, the legislation would prohibit the sweepstakes model of wagering in the state. It’s an interesting turn from Calabrese, who in January submitted legislation to regulate the form of gaming.

Calabrese’s January bill, A5196, designated sweepstakes casinos as iGaming, requiring licensure, oversight, and taxation for sweepstakes operators in the state. It was one of the first bills introduced in the country to regulate the form of online gaming.

Under the legislation, sweepstakes operators would have to be licensed and partner with a casino as would any other iGaming operator.

“This includes the conduct of background checks for employees, the prohibition on accepting wagers from persons under the age of 21 and the required use of age verification tools, the payment of licensing and permitting fees, and the payment of taxes on all gross internet gaming revenues,” according to the bill.

SPGA Speaks Out Against Bill

The Social and Promotional Games Association (SPGA), a member driven organization supporting the social sweeps industry and the responsibility of its members’ offerings, is already speaking out against the proposed bill.

In a notice sent out to the media, the SPGA decried the bill and described it as a “reckless attempt to ban sweepstakes in New Jersey.”

“This shortsighted legislation abandons the state’s progressive stance on gaming, directly contradicting the regulatory framework championed by Assemblyman Clinton Calabrese earlier this year – one that would ensure oversight, licensing, and taxation, bringing sweepstakes in line with other regulated gaming entities,” the SPGA statement read.

The SPGA urged New Jersey lawmakers to reject A5447 and instead pursue Calabrese’s former legislation regulation framework for sweepstakes games.

“New Jersey has led the way in gaming regulation – not followed. With innovative licensing frameworks for digital entertainment, the state sets the standard. This smart, forward-thinking approach should continue, not be replaced by outdated prohibition.”