Bill > A5196

Introduced Session

This bill designates the conduct of an online sweepstakes casino as a form of internet gaming. As defined by the bill, an "online sweepstakes casino" means any platform available via an Internet website or mobile application that (1) provides participants with an opportunity to play authorized gambling games or provides an experience equivalent to, or with similar statistical odds of winning as an authorized gambling game, except that the game does not require any initial monetary investment on behalf of the participants to play and instead is played primarily with free currency; and (2) awards to participants at random, as a bundle with the purchase of free currency, or upon the completion of certain specified tasks, currency or promotional gaming credits which can be wagered on games and are redeemable for cash, prizes, or other things of value. An online sweepstakes casino may additionally offer tokens, coins, chips, credits, or other forms of currency for purchase or exchange that are directly redeemable for cash, prizes, or other things of value. This bill requires that the operator of any online sweepstakes casino be licensed with the State as a casino service industry enterprise. The enterprise will be required to submit to an independent third-party audit to determine the integrity of its operations and its financial standing as a condition of receiving an initial license and will submit updated audit reports on a bi-annual basis as a condition of maintaining a valid license. In order to operate a sweepstakes casino, the enterprise, following licensure, will be required to partner with a casino licensee and to obtain an internet gaming permit. Under current law, this is the procedure for authorizing all other internet gaming. The bill authorizes the Division of Gaming Enforcement to collaborate with federal, State, and local law enforcement agencies to investigate unlawful online sweepstakes casinos. The division will have the authority to work with telecommunication providers and other commercial operators to restrict the accessibility of unauthorized online sweepstakes casinos in New Jersey. Under current law, unlawful internet gaming operators are also subject to penalties of $1,000 per player per day for making its premises available for placing wagers at casinos using the Internet and of $10,000 per violation for advertising that its premises may be used for such purpose. Under the bill, online sweepstakes casino operators that become licensed, partner with a casino licensee, and receive an internet gaming permit will be subject to the same legal requirements and standards of all other internet gaming operators. This includes the conduct of background checks for employees, the prohibition on accepting wagers from persons under the age of 21 and the required use of age verification tools, the payment of licensing and permitting fees, and the payment of taxes on all gross internet gaming revenues.

AI Summary

Committee Categories

Clinton Calabrese (D)*, 

Withdrawn from Consideration (on 04/10/2025)

Official Document