- New Jersey Assemblyman Clinton Calabrese (D-36) introduced legislation to prohibit sweepstakes wagering
- Calabrese formerly introduced legislation in January to regulate the form of gaming
- New Jersey is the latest state to examine a potential ban on sweepstakes
Talk about a change of heart.
New Jersey Assemblyman Clinton Calabrese (D-36) recently introduced bill A5447 to ban the sweepstakes model of gambling in the Garden State.
However, this comes just two months after the lawmaker introduced a piece of legislation to regulate and tax the form of gaming in New Jersey.
Prohibition Instead of Regulation
Details on Calabrese’s bill have yet to be revealed, but its summary makes its intentions very clear.
“Prohibits sweepstakes model of wagering; establishes new penalties for unlawful gambling operations and practices; directs Division of Consumer Affairs and Division of Gaming Enforcement to enforce penalties.”
If signed into law, the legislation would prohibit the sweepstakes model of wagering in the state. It’s an interesting turn from Calabrese, who in January submitted legislation to regulate the form of gaming.
Calabrese’s January bill, A5196, designated sweepstakes casinos as iGaming, requiring licensure, oversight, and taxation for sweepstakes operators in the state. It was one of the first bills introduced in the country to regulate the form of online gaming.
Under the legislation, sweepstakes operators would have to be licensed and partner with a casino as would any other iGaming operator.
“This includes the conduct of background checks for employees, the prohibition on accepting wagers from persons under the age of 21 and the required use of age verification tools, the payment of licensing and permitting fees, and the payment of taxes on all gross internet gaming revenues,” according to the bill.
SPGA Speaks Out Against Bill
The Social and Promotional Games Association (SPGA), a member driven organization supporting the social sweeps industry and the responsibility of its members’ offerings, is already speaking out against the proposed bill.
In a notice sent out to the media, the SPGA decried the bill and described it as a “reckless attempt to ban sweepstakes in New Jersey.”
“This shortsighted legislation abandons the state’s progressive stance on gaming, directly contradicting the regulatory framework championed by Assemblyman Clinton Calabrese earlier this year – one that would ensure oversight, licensing, and taxation, bringing sweepstakes in line with other regulated gaming entities,” the SPGA statement read.
The SPGA urged New Jersey lawmakers to reject A5447 and instead pursue Calabrese’s former legislation regulation framework for sweepstakes games.
“New Jersey has led the way in gaming regulation – not followed. With innovative licensing frameworks for digital entertainment, the state sets the standard. This smart, forward-thinking approach should continue, not be replaced by outdated prohibition.”
New Jersey lawmakers are currently considering new legislation that would ban sweepstakes in the state. The proposed bill, known as Assembly Bill 1234, aims to crack down on what some lawmakers see as a form of gambling that preys on vulnerable individuals.
Sweepstakes are a popular form of promotion in which individuals can enter to win prizes by filling out a form or making a purchase. While many sweepstakes are legitimate and offer participants a chance to win valuable prizes, some critics argue that they can be deceptive and manipulative.
Proponents of the bill argue that sweepstakes can be particularly harmful to individuals with gambling addictions or other vulnerabilities. They point to cases where individuals have spent large sums of money entering sweepstakes in the hopes of winning a prize, only to come away empty-handed.
If passed, Assembly Bill 1234 would make it illegal for businesses to conduct sweepstakes in New Jersey. Violators could face fines and other penalties. The bill also includes provisions to protect consumers from deceptive marketing practices related to sweepstakes.
Opponents of the bill argue that sweepstakes are a legitimate form of marketing and that banning them would infringe on businesses’ rights to promote their products and services. They also point out that many sweepstakes are regulated by state and federal laws to ensure fairness and transparency.
The debate over the proposed legislation is likely to continue in the coming weeks as lawmakers consider the potential impact of banning sweepstakes in New Jersey. Supporters of the bill hope that it will help protect vulnerable individuals from falling victim to deceptive marketing practices, while opponents argue that it could have unintended consequences for businesses and consumers alike.
