New Jersey Lawmakers Approve Dual-Currency Sweepstakes Ban

• New Jersey Assembly and Senate both approved a bill to ban dual-currency sweepstakes in the state
• The bill also criminalizes proxy betting
• It now heads to Gov. Phil Murphy (D) to potentially be signed into law

Members of the New Jersey Senate and Assembly today overwhelmingly approved a bill to ban dual-currency sweepstakes, set fines and penalties for those who engage in such, and criminalizes proxy betting in the Garden State.

The New Jersey Assembly today approved Clinton Calabrese’s (D-36) bill, A5447, by a 69-10-1vote. The legislation was then sent to the Senate, which approved the bill by a 34-5 vote. It will now be sent to Gov. Phil Murphy (D) to potentially be signed into law.

New Jersey is the sixth state to pass legislation this year to ban dual-currency sweepstakes games.

New Jersey to Ban Dual-Currency Sweepstakes

If signed into law by Gov. Murphy, New Jersey will be the sixth state this year to pass a bill to ban dual-currency sweepstakes. Montana and Connecticut have both passed bills banning the games, with their respective governors signing them into law. New York and Nevada are still waiting on their governors to sign their approved bills, however.

Louisiana lawmakers approved a bill to ban the games, but Gov. Jeff Landry (R) vetoed the bill earlier this month. He noted that the bill is unnecessary, as the Louisiana Gaming Control Board, Louisiana State Police Gaming Enforcement Division, and Louisiana Attorney General’s Office are already tasked with combating illegal gaming.

Under the legislation, sweepstakes are defined 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.”

The legislation, however, allows companies to host sweepstakes games in which participants receive entry through the purchase of food or non-alcoholic beverages.

The legislation also sets firm fines and civil penalties for operators offering unlawful gambling operations in the state. A first offense will result in a fine of $100,000, while a fine of $250,000 will be assessed for every subsequent offense.

Additionally, for each cease-and-desist order ignored by an operator, regulators will be able to assess a $25,000 fine for each violation.

Proxy Betting Criminalized in Bill

The approved legislation also specifically criminalizes proxy betting in the state. According to the proposed legislation, the bill makes it illegal to engage in proxy betting in which “a person risks property with a value of $1,000 or more, having agreed to pay 10% or more of the proceeds of the gambling activity to another.”

If found to be engaging in such behavior, a resident will be guilty of a disorderly persons offense.

A person who conspires to engage in proxy betting is also guilty of a disorderly persons offense.