Amid Record Revenues NJ Bans Sweeps Ban for Safer Online Gaming

The US state of New Jersey has recorded high revenues from its online gaming sector but the state is also tightening rules and is particularly targeting sweepstakes casinos.

Amid High July 2025 Revenue, NJ Tightens Online Gaming Rules

The revenue report reveals that casino hotels brought in $284.1 million in July, a 4.3 percent increase compared to July 2024.

Online casinos continued their rapid growth, and have generated $247.3 million in revenue, up 26.6 percent year over year. Year-to-date figures have witnessed a 22.7 percent surge.

On the other hand, sports betting has slashed slightly. Revenue dropped 6.6 percent from the same month last year, totaling $74.8 million despite a small increase in the total handle.

Sweepstakes casinos have long operated in a gray area in the US. These platforms use two virtual currencies, Gold Coins for play and Sweeps Coins for potential prizes or cash-outs. The structure let them operate outside traditional gambling laws until now.

On August 15, 2025, New Jersey enacted a ban on sweepstakes-style gambling platforms. The new law extends the definition of a prize to include any virtual item that can be redeemed, traded, or cashed out. That effectively outlaws the Sweeps Coin model.

The state’s Division of Gaming Enforcement and Division of Consumer Affairs will enforce the law. Penalties include a $100,000 fine for a first offense and $250,000 for each additional violation.

New Jersey policymakers say the ban is in place with fairness, transparency, and player protection. They argue that sweepstakes casinos, function without proper control and mislead users about the risks involved. The debate over “misleading users” often centers on the games’ design: the constant availability and variable reward systems that maximize engagement. For a deeper understanding of these factors, read our analysis on the hidden psychology behind online gambling growth that drives many of these regulatory actions.

One official stated that the goal is to support the state’s licensed gaming ecosystem and closing down unsafe and deceptive alternatives. By regulating this space, New Jersey aims to promote a more transparent and responsible gaming environment.

But, the move has sparked a mix of opinions. Some critics have outrightly called the move government overreach. The Social and Promotional Games Association argued that it aims to “outlaw promotional sweepstakes platforms that are already legal, do not require purchase to play, and are enjoyed responsibly by millions of adults across the country.” Industry groups claim that the ban obstructs innovation and limits consumer choice. They added that the ban especially restricts those who enjoy casual play without fully entering the gambling space.

Players will notice the change right away. Major sweepstakes platforms like Chumba Casino, Global Poker, and LuckyLand Slots have, however, already stopped operating in New Jersey.

This may push more players toward licensed online casinos in usa, which offer legal protections and responsible gaming features. However, some users (especially those used to low-stakes or free play) may feel limited by the change.

Operators in the legal market could benefit from the shift, as fewer options mean a more concentrated user base. But there’s also concern that displaced players could choose offshore or unregulated sites.

It is worth noting that New Jersey was one of the first states to legalize online casinos and challenge federal sports betting rules. Now, with this latest move, it joins states like Connecticut and Montana in banning sweepstakes casino models.

Other states are watching closely. New York is considering similar legislation. California is considering its own framework. As online gaming continues to expand, New Jersey’s approach could inspire national trends.

Online gambling has been seeing a wave of regulation developments these days. On a national scale, Chile and India are moving toward formalizing rules for online gaming platforms. On the other hand, the Philippines’ Department of the Interior and Local Government (DILG) has strictly banned all its employees from engaging in any kind of online gambling, citing serious threat to the integrity of public service.