Governor signs off on New Jersey sweepstakes gaming ban

The legislation also bans proxy betting in New Jersey.

US.- New Jersey has become the latest US state to ban so-called sweepstakes gambling after the state’s governor, Phil Murphy, signed Assembly Bill 5447 into law. The legislation bans dual-currency sweepstakes as well as proxy betting, but allows sweepstakes with free entry,

The bill was introduced by representative Clinton Calabrese and senator John J. Burzichelli and approved by the Assembly and Senate in late June. It defines sweepstakes as “promotional, advertising, or marketing event, contest, or game, whether played online or in-person, in which something of value, such as a prize or prize equivalent, is awarded, either directly or indirectly through means such as a dual currency system of payment that allows a participant to exchange the currency for a prize or prize equivalent.”

Companies can still host sweepstakes games in which participants are granted entry by buying food or non-alcoholic drinks.

The legislation lays out fines and civil penalties for breaches of the legislation, with a fine of $100,000 for a first offence and $250,000 for every subsequent offence. Operators may also be fined $25,000 for every cease-and-desist order that goes ignored.

As for proxy betting, the bill prohibits betting in which “a person risks property with a value of $1,000 or more, having agreed to pay 10 per cent or more of the proceeds of the gambling activity to another.” This becomes a disorderly persons offence.

Sweepstakes are already banned in New York, Washington, Michigan, Connecticut and Idaho. Nevada, and Montana have passed legislation to introduce bans from October. Legislation is also under review in Ohio, Massachusetts and Illinois.

The Social Gaming Leadership Alliance (SGLA) has criticised the leglislation. Executive director Jeff Duncan said: “Lawmakers in New Jersey have completely ignored their own constituents and enacted a ban that voters oppose. 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.”

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See also: New Jersey bill proposes ban on micro bets