A5447 is a law now in New Jersey, stopping sweepstakes gambling. The law says sweepstakes are games for marketing where you can win a prize or something of value, directly or using a payment system with special currency that can become prizes. This law lets people in charge of sports betting in New Jersey stop these sweepstakes using court orders, and they can fine the ones running it $100,000 for the first time and $250,000 if it happens again. New Jersey politicians want to control iGaming in the state with rules like this, since companies inside and outside the state fight for customers. Other places, such as Connecticut, passed laws like this in 2024. Governor Murphy made the anti-sweeps law official soon after lawmakers agreed that people in iGaming and online sports betting must now pay a 19.75% tax.

No Sweepstakes and No “Swindling”

Sweepstakes are not alone in facing trouble with A5447 in place. The law makes it against the law to run any online gambling place if you do not have a license. This includes any website or app where people can go to gamble through computers or phones. There is also new language in the law that calls gambling any kind of buying, selling, or trading things of value when someone hopes to get something based on the result of a chance contest.

This section does not say “sports event contracts,” but New Jersey is joining other states with moves to block sites like Kalshi and similar prediction exchanges from offering sports betting without state rules. Now, the meaning of illegal “rigging” includes sports too, so it is a crime to give or take bribes for fixing games or shows. There is another part of the law about “proxy betting,” making it illegal if someone bets $1,000 or more and pays somebody else 10% or more of the possible winnings. Breaking this rule can bring disorderly persons charges, except if the bettor has full control of the bet.

Industry Reaction and Concerns

Lawmakers in New Jersey want to keep legal sportsbooks and iGaming sites safe from other gambling and to stop bettors or players from acting out. Yet, not everyone wanted this law. The Social and Promotional Games Association said in March 2024 that A5447 tries to remove sweepstakes that are already legal, do not make people buy anything to join, and are played safely by many adults across the United States.

Joe Brennan Jr., who helped start Prime Sportsbook and works for American Bettors’ Voice, posted on social media that the new law could send betting money away from New Jersey to places outside the rules. Brennan said, “The language is so broad, it could make @JasonKelce guilty of ‘swindling & cheating’ when he gives his pick on his @nfl pregame show,” sharing this on Twitter/X in June.