A New Jersey lawmaker has reversed course on sweepstakes gaming.
Assemblyman Clinton Calabrese recently filed bill A5447 calling for a ban on the controversial online social casinos and sportsbooks less than two months after proposing legalization.
Calabrese’s latest bill wants to “prohibit sweepstakes model of wagering” and establish “new penalties for unlawful gambling operations and practices.” The legislation also calls for the New Jersey Division of Consumer Affairs and Division of Gaming Enforcement to enforce those penalties.
In January, Calabrese introduced A5196, a bill that designated “sweepstakes casinos as internet gaming” with license, oversight, and taxation requirements equal to the legal iGaming that New Jersey currently allows and regulates.
Under fire
Sweepstakes gaming differs from traditional online casinos and sportsbooks in that it offers free coins to play games. Additional coins can be purchased and exchanged for cash and prizes on slots, table games, and sports betting.
These operators, like McLuck, Chumba Casino, and High 5, aren’t regulated or taxed in legal and illegal U.S. gambling jurisdictions.
The industry has taken off over the last few years with revenue estimates in the U.S. alone reaching $6.9 billion in 2025.
Also known as social casinos, sweepstakes companies' impact has largely gone unnoticed by lawmakers and regulators. However, last year, the American Gaming Association, a U.S. trade industry group for sportsbooks and iGaming operators, asked states to evaluate their laws and determine whether sweepstakes companies are operating legally.
The Indian Gaming Association has publicly decreed that sweepstakes gaming is illegal and has asked state Attorney Generals to take action. The IGA argues that unregulated, untaxed gambling money is going to social gaming companies that should be going to tribes and commercial operators.
Taking action
The Garden State is one of seven U.S. jurisdictions with legal iGaming. It currently has nearly 30 licensed online casino and poker operators and more than a dozen mobile sportsbooks.
A New Jersey resident filed a lawsuit against several sweepstakes gaming companies, including McLuck, High 5, Wow Vegas, and CrownCoins, for operating illegally. Apple and Google were also named for supporting illegal gambling platforms.
New Jersey isn’t the only state considering a stance on sweepstakes gaming. On Monday, the Senate Budget and Taxation Committee passed a Maryland bill that would ban social operators in a non-iGaming legal state by a vote of 13-0.
Lawmakers in New York, Mississippi, and Connecticut also want to crack down on sweepstakes gaming.
