NJ Legislature Takes a Minute to Ban Sweepstakes Casinos
In a matter of minutes, the New Jersey legislature acted swiftly and decisively to pass legislation prohibiting sweepstakes gaming in the state. There was no debate or discussion, just a quick vote on a busy day as the chambers worked against the July 1 budget deadline.
The New Jersey Assembly was first to act on A5447, passing it by a 69-10-1 vote. Minutes later, it hit the Senate floor, where that chamber approved the measure 34-5.
The bill next heads to Gov. Phil Murphy’s desk alongside a slew of legislation passed on Monday.
List of states to pass sweeps bills grows longer
It marks the sixth state where the legislature has passed a measure intended, at least in some part, to impact the sweeps industry. While Louisiana Gov. Jeff Landry vetoed the measure, Montana and Connecticut bills have already been signed into law and Nevada and New York legislation is still pending the signature of the respective governors.
The New Jersey version of the sweepstakes ban targets any form of online gaming operation with a dual-currency system and includes specific carve-outs to ensure fast food companies and others can still run contests within the scope of the new law.
Enforcement of the new laws falls to the Department of Consumer Protection and the New Jersey Division of Gaming Enforcement.
The measure also includes provisions criminalizing the promotion of sweepstakes operators in the state, which presumably will impact affiliates and influencers working with sweepstakes brands.
The ban is set to go into effect as soon as Murphy signs the bill.
WPT CEO made late plea to lawmakers
Lawmakers opted to pass the measure even after a last-ditch effort from World Poker Tour (WPT) President and CEO Adam Pliska during a Senate Committee on Budget and Appropriations last week.
Pliska informed the group he was fresh off a red eye flight in order to appear in person and plea on behalf of the WPT’s sweepstakes products, ClubWPT and ClubWPT Gold.
“We have never had an issue. We have never had a lawsuit. We’ve never had a cease and desist,” Pliska noted. “We’ve operated a sweepstakes product for over 15 years, and so I just want to make myself available to the committee, if anybody would like to continue to explore this idea that there is more revenue to be found.”
Pliska suggested regulation, sales tax as revenue source
Pliska noted that New Jersey does not collect sales tax on online sweeps coins purchases, which is something several other states do. He pointed to that as a potential source of revenue. He also pointed to the WPT’s famous televised poker tour and the $6-$7 million spent annually on production indirectly benefits land-based casinos worldwide, including a past WPT partner, Borgata Casino in Atlantic City.
Pliska suggested the company’s push in the sweeps arena does similar outreach as the television show does, helping to bring people back to the brick and mortar casinos the bill is attempting to protect. He also argued that, since his company is solely focused on poker, it does not carry the same negative impact as a sweepstakes casino product.
ClubWPT Gold available in 45 states, including NJ
In 2008, WPT launched its ClubWPT sweepstakes model, where users pay a monthly subscription fee to enter a series of poker tournaments with prizes, but the ClubWPT Gold offering is much newer.
Only launched at the start of 2025, ClubWPT Gold is more akin to the VGW sweepstakes poker offering Global Poker. Users in the 45 states where it is offered utilize a dual-currency format to buy into cash games and poker tournaments using Sweeps Coins.
This is the first time WPT has taken action in a sweepstakes bill debate. This summer, ClubWPT Gold has been more focused on promotion, including some million-dollar bonuses connected to winning bracelets at the World Series of Poker (WSOP), which has created quite a controversy in the poker community.
Bill also criminalizes sports betting bearding
The bill expanded beyond just sweepstakes and also included some other updates to gambling law in the state. There are provisions upping punishments for anyone who takes part in attempting to rig a sporting event . The amount of the bribe a person accepts to do so determines whether the manipulation is a second, third or fourth degree criminal violation.
There is also a new piece of language involving “swindling” that will impact bettors directly.
The language of the bill calls out using insider information to place a wager. It also has a section that appears to be targeted towards the practice of bearding:
“…with the purpose to deceive, uses another person’s gaming account, including, but not limited to, a wagering account for Internet gaming or sports wagering, to place a wager and wins, or attempts to win, money or property or a representative of either.”
While bearding is generally against most sportsbooks’ terms of service and is a regulatory violation in some states, the step of actually criminalizing the behavior of the bettors is unusual. If bearding is used to generate profits in excess of $75,000, it will be considered a second degree crime, which is a felony.
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