After some deliberation, Gov. Phil Murphy has finally signed a bill into law that outlaws sweepstakes gambling in the state of New Jersey.
The move comes amid debates about whether the model was just a way to circumvent the fine print and offer online gambling with none of the regulatory baggage.
New Jersey goes after sweepstakes with a new law
According to New Jersey lawmakers and now the governor, this is precisely what sweepstakes are. While sweepstakes are established in legal precedent, there has been a growing choir of antagonizing voices, arguing that sweepstakes are not about recreational fun.
A recent American Gaming Association survey indicated that the majority of players participated in sweepstakes casinos to win money.
"New Jersey has a proud tradition of responsible gaming regulation that we don’t want to be undermined by bad actors seeking to exploit legal loopholes at the expense of consumers," explained Sen. John Burzichelli, one of the co-sponsors of the bill.
He continued: "This will ensure that our laws are clear, our penalties are stronger, and that we have the tools necessary to shut down illegal sweepstakes gambling operations before they can cause further harm."
Naturally, not everyone is happy with this measure. The Social Gaming Leadership Alliance (SGLA) was quick to condemn the decision and called it tone-deaf. SGLA Executive Director and a former Congressman, Jeff Duncan, had this to say, commenting on the most recent decision:
"Lawmakers in New Jersey have completely ignored their constituents and enacted a ban that voters oppose. This law is a textbook example of government overreach that strips away entertainment choices from adults who should be free to make decisions about their entertainment."
It’s not about consumer protection, says trade group
He called the law not genuine and insisted that the measure hardly sought to improve consumer protections. Duncan saw in the decision the lobbying of the gaming industry, which has pushed for the bill to help strengthen its interests, while denying Americans a vertical that they have long enjoyed legally.
New Jersey joins a fairly long list of states to have acted similarly against the sector. Other states to have issued bans against the vertical are Connecticut, Montana, and Washington. In places such as Michigan, Ohio, Florida, Maryland, and New York, there has been a growing choir of anti-sweepstakes lawmakers.
Michigan, in particular, has resorted to cease-and-desist letters sent to sweepstakes operators, ordering them to exit the market.
