Are Sweepstakes Casinos Legal in New Jersey?

The law: A-5447 (P.L. 2025, c.128)

Signed by Governor Phil Murphy on August 15, 2025, and effective immediately, A-5447 specifically targets the "dual-currency system of payment that allows a participant to exchange the currency for a prize" - the Gold Coin / Sweeps Coin structure our guide to how the model works describes. The law also separately criminalizes "maintaining an online gambling resort" and bans proxy betting.

It's worth being precise here: this law doesn't touch New Jersey's existing, fully legal, licensed real-money online casino industry - that's a separate, regulated market overseen by the state's Division of Gaming Enforcement. This ban is specifically about the free-to-play sweepstakes model operating outside that licensing structure.

Penalties

Enforcement is split across two agencies. The Division of Consumer Affairs can fine operators up to $100,000 for a first offense and up to $250,000 for each subsequent offense, with every day of continued operation counted as a separate violation. The Division of Gaming Enforcement can separately fine up to $25,000 per cease-and-desist violation. Criminally, maintaining an online gambling resort is a third-degree crime carrying a $50,000-$100,000 fine, and the law provides for restitution to affected players (doubled for seniors).

What this means for you

If you're a New Jersey resident, expect sweepstakes casinos to block your access - the state's existing, well-established regulated online casino market gave regulators extra motivation to shut down an unlicensed parallel model quickly, and the penalty structure reflects that. A site that still accepts New Jersey sign-ups for the sweepstakes model is a red flag, not a loophole.

Compiled from public reporting as of October 2026. Laws and enforcement can change - this is general information, not legal advice. If you have questions about your own situation, consult a licensed attorney.