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State of Play
- New Jersey is poised to reconsider its stance on sweepstakes casinos with Senate Bill S1500 aiming to legalize and regulate online sweepstakes casino gaming.
- This move represents a potential shift from the 2025 statewide ban and could place New Jersey among the first states to fully license and tax these games.
New Jersey state Sen. Joseph P. Cryan introduced Bill S1500 on Jan. 13. It designates sweepstakes casinos as a form of internet gaming (iGaming).
The bill is a revival of two previous efforts, S4109 and A5196, which did not pass in 2025 amid legislative resistance and a governor-signed ban that year.
S1500 seeks to legally define “free currency” – tokens used for gameplay but not redeemable for cash –and “online sweepstakes casinos,” which operate with a dual-currency model. The bill stipulates that licensed sweepstakes operators would undergo oversight by the Division of Gaming Enforcement and be subject to a gross gaming revenue tax of 19.75%, aligning sweepstakes casinos with New Jersey’s regulated sportsbooks and online casinos.
Legalization could be model for other states
If passed, S1500 could open a new regulated market in New Jersey. New Jersey online casinos are legal, as is sports betting.
Players would gain access to sweepstakes casino gaming options legally authorized under state law, potentially increasing game diversity and regulated choices. Operators would face regulatory compliance including licensing from New Jersey’s Division of Gaming Enforcement and the responsibility of paying taxes on gaming revenue.
This could signal a lucrative opportunity for businesses aiming to serve a legal sweepstakes player base under clear guidelines, while enhancing consumer protections and state revenue streams. It could also be a model for other states.
Next steps for S1500 involve passage through both legislative chambers and signing by Gov. Mikie Sherrill, who took office this month.
Based on reporting by Bryan Myers for M Live.
