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Committee advances bill to curb sweepstakes‑style gambling and expand enforcement tools
Summary
Assembly Bill A5447, aimed at prohibiting sweepstakes-style wagering and expanding penalties and enforcement authority, was amended and released by the committee after testimony from the Attorney General's Office and industry representatives highlighting constitutional and consumer‑protection concerns.
The Assembly Tourism, Gaming and the Arts Committee advanced Assembly Bill A5447, which would prohibit the sweepstakes model of wagering, expand criminal and civil penalties for unlawful gambling practices, and direct the Division of Consumer Affairs and the Division of Gaming Enforcement to enforce penalties.
Vice Chairman Calabrese, the bill’s prime sponsor, told the committee the measure has been developed over time with stakeholder input and that the bill intends to close a legal loophole exploited by unregulated operators. Steve Finkel of the Attorney General’s Office said the constitutional starting point for the discussion is the state constitution’s gambling clause, citing Article 4, Section 7, paragraph 2, and argued the bill updates older criminal provisions to address Internet gaming and sweepstakes operations.
"No gambling of any kind shall be permitted unless approved by the majority of the voters," Finkel said, referencing the constitutional provision and urging that the legislation clarify that certain sweepstakes-style operations are not authorized by prior voter approvals. He described the bill as modernizing terms and providing investigative and civil enforcement tools to both the Division of Consumer Affairs and Division of Gaming Enforcement.
Eric Schuffler, representing the Sports Betting Alliance (which the record lists as including Fanatics, DraftKings, BetMGM and FanDuel), testified in favor and described sweepstakes operators as a large, largely unregulated industry that avoids taxation and consumer safeguards. "They're a huge business," Schuffler said. "The US revenue estimates are $4,000,000,000 business that exists without any taxation." He told the committee such platforms often market heavily on social media used by younger audiences and argued they present age‑verification and consumer‑protection issues.
Committee members asked questions about the approaches other states have taken and about enforcement options. The committee considered proposed amendments that broadened the definitions of "game" and "prize/prize equivalent" to capture virtual tokens and third‑party marketplaces, and then voted to amend and release the bill. The chair announced the bill was released as amended and will proceed to the full Assembly for further action.
The record includes submitted supporting slips from industry players (Hard Rock Digital, Casino Association of New Jersey) and opposition slips (virtual gaming worlds representative Matthew Dickovic).
