New Jersey’s stance on gambling is under scrutiny this week as the Social Gaming Leadership Alliance (SGLA) calls on Governor Phil Murphy to veto legislation that would effectively ban sweepstakes casinos, just days after the state signed a new law raising online gambling taxes.
NJ Sweeps Ban Veto Push
The New Jersey Legislature recently passed A5447 and S4282, bills that would severely restrict sweepstakes casinos and other promotional sweepstakes models by imposing a $20 purchase cap and limiting prizes to physical goods.
The SGLA, which represents platforms such as Chumba Casino, Luckyland Slots, Global Poker, Pulsz, McLuck, and HelloMillions, argues that the legislation is built on flawed definitions and will have broad, unintended consequences across industries using promotional sweepstakes models legally for decades.
“This is not gambling — it’s marketing,” said Jeff Duncan, SGLA Executive Director and former Congressman, emphasizing that SGLA member platforms already maintain strong consumer protections, including age verification, anti-money laundering checks, and self-exclusion options.
The SGLA previously submitted testimony to the Legislature with partners including VGW, B-Two Operations, and the World Poker Tour, stating that it is open to working with lawmakers on a robust regulatory framework that protects consumers without dismantling legitimate free-to-play digital entertainment options.
New Jersey Online Casino and Sports Betting Taxes Increase
Governor Murphy has signed into law a tax increase on online casino, sports betting, and daily fantasy sports revenue, raising rates from 15% (casino) and 13% (sports betting) to 19.75% across the board. This change is projected to generate an estimated $172 million in additional annual revenue for the state, forming part of New Jersey’s $58.8 billion state budget.
The higher tax rates place New Jersey closer to other states with high gambling tax regimes, although still lower than Pennsylvania’s 36% for online casinos and New York’s 51% for sports betting.
Analysts suggest that operators may respond to the increased tax burden by reducing player promotions, which could impact player incentives at a time when competition in the online casino sector is growing.
What This Means for Players
New Jersey players face the possibility of losing access to sweepstakes casinos if the governor does not veto the proposed ban, while also potentially seeing fewer promotional offers from regulated online casinos as operators adapt to higher tax rates.
The SGLA argues that its members provide a responsible, free-to-play alternative in the gaming landscape and that collaboration with regulators is the path forward. The organization emphasizes that it is not seeking exemption from oversight but aims to ensure legislation supports innovation and player choice while maintaining consumer protections.
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