Sweepstakes Casinos Banned in New Jersey, Gambling Revenue on the Rise

In a landmark regulatory move, New Jersey Governor Phil Murphy has signed a law that effectively bans sweepstakes casinos in the Garden State. Assembly Bill A5447, approved last June and signed into law on August 15, prohibits any form of online gaming that relies on a dual-currency system, where players can exchange virtual credits for cash prizes.

This way, New Jersey joins Connecticut, Montana, and Nevada, which signed similar bills against sweepstakes operators not that long ago.

Nationwide Crackdown Gains Momentum

The decisive move to ban sweepstakes casinos puts New Jersey at the forefront of the wider national effort to suss out sweepstakes casinos and cut into their profits. This goes hand in hand with Governor Phil Murphy raising online casino and sports betting taxes from 15% and 13% to a flat rate of 19.75%.

Looking beyond the Delaware River, the New Jersey ban forms part of a broader trend aimed against sweepstakes casinos. Montana, for example, recently criminalized platforms that facilitate gambling through dual-currency systems. Penalties include up to 10 years in prison and fines up to $50,000. Similarly, if a little more moderately, Connecticut proposed penalties of up to five years in prison and fines up to $5,000 for sweepstakes operators.

In Nevada, Ruby Sweeps casino has just joined a long list of operators who have left the Silver State after its legislators made it clear that sweepstakes were not welcome.

Other states, such as Delaware, New York, and Louisiana, have also taken legal action, but have yet to enact laws. Last June, New York Attorney General Letitia James issued cease-and-desist letters to 26 sweepstakes casinos operating in the state. Delaware shut down VGW last April – one of the sweepstakes giants, while Louisiana, despite failing to push through a similar bill, issued as many as 40 cease-and-desist letters.

Not Everyone’s on Board, Though

Many have hailed the enactment of the new law, while some, like the newly formed Social Gaming Leadership Alliance (SGLA), remain sceptical about its so-called draconian measures. The SGLA executive director, Jeff Duncan, argued that while the ban should bring more order to the NJ online casino landscape, it nevertheless went against public opinion and hampered consumer choice.

However, the SGLA was formed by the aforementioned VGW, a leader in the sweepstakes casino market that operates platforms such as Chumba Casino and Luckyland Casino. Yet despite its origin, Duncan’s notion that the new law is designed to protect established gambling interests to the detriment of consumers is bound to gain some ground.

NJ Strong iGaming Performance in July

Meanwhile, the New Jersey Division of Gaming Enforcement reports strong numbers. In July 2025, the state’s gambling industry experienced a 10.7% year-over-year increase, despite a moderate downturn in sports betting activities.

The total gambling revenue for July stood at $606.2 million, nearly $60 million more than in July 2024, and reaching $3.92 billion year-to-date. July’s total revenue number also saw a significant uptick from last month’s $581.6 million.

Growth-wise, online casino games were once again the strongest card in the deck, bringing in $244.6 million or a 26.9% improvement year-on-year. The dynamic duo of FanDuel and Golden Nugget again led the pack with $52.1 million, followed closely by DraftKings and Resorts World. BetMGM and Borgata were a distant third.

Land-based casino gaming netted the highest revenue ($284.1 million), up 4.3%, with slots once again absolutely dominating the conversation. On the other hand, sports betting saw a 6.6% decline during the same period, with the sector even reporting an overall retail loss of $1.1 million.