Summary
- New Jersey has become the most recent state to challenge the sweepstakes industry.
- Two senators claim that the industry is employing indirect methods to avoid gambling regulations.
- SB 4282 has passed a Senate committee, but it still has a long way to go.
Anti-sweepstakes legislation is gaining traction in the United States, following Montana's move to become the first state to completely ban this type of operation. While some states, including Florida, have failed to pass successful restrictive measures against the industry, New Jersey remains committed to pursuing this issue.
Sweepstakes on slippery footing in New Jersey
Last week, the Senate State Government, Wagering, Tourism, & Historic Preservation Committee approved Senate Bill 4282, aimed at prohibiting sweepstakes-based wagering, according to an update on the Senate Democrats' website. Sponsored by Senators John Burzichelli and John McKeon, the bill seeks to establish stronger penalties for illegal gambling activities. It aims to empower state regulators, particularly the Division of Consumer Affairs and the Division of Gaming Enforcement, by granting them expanded authority to better coordinate investigations into suspected illegal activities. Recently, the Connecticut Department of Consumer Protection reached a $1.5 million settlement with High5Games. Senate Bill 4282 explicitly labels sweepstakes gaming operations as illegal attempts to circumvent existing gambling laws. If passed, the bill will enforce stricter regulations and harsher penalties for operators of such websites. Commenting on the legislation, Senator Burzichelli stated: New Jersey takes pride in its responsible gaming regulations. We will not tolerate those who exploit legal loopholes at consumers' expense. This bill will clarify our laws, strengthen our penalties, and equip us with the tools needed to shut down illegal sweepstakes gambling operations before they cause further harm. Senator McKeon emphasized the importance of taking proactive measures, arguing that young people are particularly susceptible and that sweepstakes schemes often target vulnerable groups to engage in illicit gambling.
Sweepstakes are compared to illegal gambling in the new bill
This bill aims to implement safeguards to protect individuals from being exploited and lured into gambling activities that could negatively impact them for years, he stated. Meanwhile, the sweepstakes industry has expressed significant concern. VGW, a leading company in the sweepstakes field, has established the Social Gaming Leadership Alliance. This organization intends to clarify misconceptions about the industry, collaborate with legislators, and ultimately ensure that Americans can continue to enjoy these games as they always have.
