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Published: May 31, 2025

New Jersey seeks to ban sweepstakes promotions, casino-style token games

By addressing evolving forms of digital and proxy gambling, the bill aims to close legal loopholes and strengthen consumer protections across New Jersey.

TRENTON, N.J. — The New Jersey Senate State Government, Wagering, Tourism & Historic Preservation Committee has advanced a bill to ban unlawful gambling operations and regulate sweepstakes practices, while significantly expanding enforcement powers and penalties for violations.

Senate Bill No. 4282, as amended and reported out of committee on May 29, specifically targets illegal “sweepstakes” gambling schemes, including those disguised as promotional contests either online or in-person. The legislation establishes strict guidelines for lawful sweepstakes and prohibits prize-based systems involving dual-currency models or casino-style simulations unless they meet narrowly defined criteria.

The bill defines a sweepstakes as any promotional or marketing event where participants may win something of value, either directly or through systems involving redeemable credits or tokens. Under the bill, sweepstakes may only be permitted if free entry is available and any purchase requirements are limited to low-cost, non-alcoholic items, excluding digital credits or tokens exchangeable for money or goods.

https://www.shorenewsnetwork.com/2025/05/31/new-jersey-seeks-to-ban-sweepstakes-promotions-casino-style-token-games/