Bill
A 5447
Bans pay-to-enter sweepstakes that amount to gambling, defines lawful sweepstakes, and strengthens penalties and enforcement for online and other unlawful wagering.
Status and timeline
- Introduced: March 17, 2025 (A5447). Primary sponsor: Angelo J. Morinello.
- Committee activity: Referred to Governmental Operations; reported with amendments by Assembly Tourism, Gaming & the Arts Committee (May 8, 2025); reported by Assembly Appropriations (June 19, 2025).
- Floor action: Passed Assembly June 30, 2025 (69–10–1); passed Senate June 30, 2025 (34–5).
- Enacted: Approved as P.L.2025, c.128 (Aug. 15, 2025).
Main purpose
- To prohibit unlawful "pay‑to‑play" sweepstakes that operate as gambling, to define lawful parameters for legitimate sweepstakes, and to strengthen criminal and civil penalties and enforcement authorities against unlawful gambling operations — including online models that mimic gambling.
Key definitions (high‑level)
- "Sweepstakes": a promotional/marketing contest (online or in person) awarding a prize or "prize equivalent" (cash, cash equivalent, merchandise, tokens/virtual items exchangeable for value, or credits).
- "Game" includes casino‑style games, lottery games, and sports wagering, and any simulators of those games.
Prohibitions and lawful exception
- Pay‑to‑enter sweepstakes (where a participant pays or proffers something of value to enter) are declared unlawful gambling, except where all of the following are met:
1. A no‑cost method of entry exists;
2. Any paid entry is ancillary to purchase of food, non‑alcoholic beverages, or merchandise not exceeding $20 (or another DCA‑set amount) — and may not be coins, tokens, or online credits that function solely as entry currency or are exchangeable for money/merchandise;
3. Winners are not determined by sports event results (unless only free entry is provided);
4. Clear disclosure of rules, odds (or notice of unlimited entries), and prizes on entry forms/websites;
5. Prize value counts as New Jersey taxable income;
6. Minors (<18) need parental consent to claim prizes > $1,000; and
7. Odds of winning must be identical whether entry was paid or free.
Criminal and other substantive changes
- Expands the statutory definition of "gambling" to include buying/selling/trading something of value in return for contingent value tied to a contest of chance.
- Elevates maintenance of an online gambling resort from a 4th‑degree to a 3rd‑degree crime; increases fines and sets a $50k–$100k penalty range for online gambling resorts.
- Broadens "rigging" offences to explicitly include inducements to players, officials, or teams to underperform or corruptly officiate in sporting events.
- Revises swindling/cheating to cover wagering with insider information not available to the public and using another person’s gaming account.
- Prohibits proxy betting where property of $1,000+ is risked and 10%+ of proceeds are agreed to be paid to another; proxy betting and conspiracies are disorderly persons offenses (with exception if the bettor retains sole control over betting decisions).
Enforcement, remedies, and penalties
- Enforcement split: Division of Consumer Affairs (DCA) oversees sweepstakes rules/enforcement; Division of Gaming Enforcement (DGE) enforces other unlawful gambling prohibitions.
- Enforcement powers: injunctive relief, subpoenas and investigations, Superior Court contempt remedies, license/permit revocation, liens on assets of fined parties.
- Civil penalties: up to $100,000 for first offense; up to $250,000 for second and subsequent offenses; each day = separate offense. Cease‑and‑desist violations: $25,000 per violation.
- Restitution: ability to restore monies/property acquired by unlawful operations; senior citizens may be entitled to twice the amount returned.
Fiscal impact
- Office of Legislative Services: indeterminate annual revenue increase (from civil penalties) and indeterminate additional State costs and workload for DCA, DGE, and Judiciary.
Regulatory authority
- DCA authorized to adopt implementing rules under the Administrative Procedure Act; DGE enforcement authority expanded per statute.
Compiled from official sources — confirm details with the bill’s official record.
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