Barring an unlikely veto, New Jersey’s ban on most sweepstakes casinos will take effect on Aug. 14. The legislation passed both chambers of the New Jersey Legislature on June 30 and has been sitting on Gov. Phil Murphy’s desk ever since. Under state law, bills automatically become law 45 days after reaching the governor’s desk unless vetoed. Murphy has taken no action, all but ensuring the measure will take effect.
How the Ban Works
The bill, sponsored by Assemblyman Clinton Calabrese, defines a prohibited sweepstakes casino as any promotional game that awards something of value, directly or indirectly, through mechanics like a dual-currency system. This definition captures the core operating model of popular platforms such as Chumba Casino, LuckyLand Slots, Pulsz, and McLuck.
Violators face steep penalties: up to $100,000 for a first offense and $250,000 for repeat violations. Enforcement will be handled jointly by the New Jersey Division of Gaming Enforcement (DGE) and the Division of Consumer Affairs.
The law stops short of banning all sweepstakes entirely. Operators can still run promotions if there is no cost to play, and prizes are limited to low-value merchandise or food and drink worth $20 or less. However, paid casino-style games with real cash prizes will be off the table.
From Support to Reversal
Calabrese’s role in the ban is notable for a dramatic shift in position. In January, he introduced legislation that would have regulated and legalized sweepstakes casinos in New Jersey. But by March, he had reversed course, arguing that banning sweeps would protect the state’s regulated online casino market. That pivot helped the bill move swiftly through the Legislature.
“This bill protects consumers and supports the integrity of New Jersey’s regulated gaming industry,” Calabrese said during earlier committee discussions.
Industry Braces for Impact
Operators are already adjusting. VGW, parent company of Chumba Casino and LuckyLand Slots, has notified New Jersey players they will no longer be eligible to participate. Similar exits are expected from Pulsz, McLuck, and other major sweeps brands before the Aug. 14 deadline.
For these companies, compliance would require stripping away core revenue drivers: virtual currency purchases, prize redemptions, and casino-style gameplay. Most see little business incentive to remain under the new framework.
What Comes Next
Once the ban takes effect, remaining operators will have three main options: exit the market, pivot to low-value prize promotions, or develop alternative formats like skill-based games or DFS-style competitions.
As history has shown with daily fantasy sports battles in states like New York and Arizona, companies that adapt quickly and creatively stand the best chance of survival. Those that cling to now-prohibited mechanics risk regulatory penalties and reputational damage.
For New Jersey players, the change will mark the end of easy access to sweepstakes casinos offering cash-out winnings. For the industry, it’s another sign that the era of unchecked growth in this space may be coming to a close.
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