Two gambling establishments offering sweepstakes, located in New Jersey, have been closed down.
In a significant move for the iGaming industry in New Jersey, Governor Phil Murphy has 45 days to sign or veto AB 5447, a bill that passed on June 30, 2025. If signed, the bill will immediately outlaw sweepstakes-style online casinos in the state.
AB 5447 aims to tighten regulations in the iGaming market by banning sweepstakes casinos, a category of games that are generally viewed as a legal workaround for real-money online gambling but face increasing regulatory scrutiny. Multiple sweepstakes casinos, including Funzpoints, Spree, Chumba Casino (owned by Virtual Gaming Worlds), and others, have either exited or begun winding down operations in New Jersey in anticipation of the law’s enforcement by August 14, 2025 at the latest.
The bill’s immediate effectiveness clause means the ban will begin either on the day Governor Murphy signs the bill or automatically 45 days after the legislature passed it, if Murphy neither signs nor vetoes it. If signed, sweepstakes gambling platforms will face permanent closure or exit from New Jersey’s market, reshaping the online gambling landscape by consolidating the state’s gaming ecosystem around traditional iGaming and sports betting models.
This move reduces competition from sweepstakes casinos, potentially leading to increased revenue for real-money online casinos and sportsbooks licensed under New Jersey’s regulated market. Richard Janvrin, who has covered various aspects of iGaming, including news, reviews, bonuses/promotions, sweepstakes casinos, and legal matters, may witness the impact of this regulatory tightening in the industry.
Richard Janvrin, a New Hampshire graduate, entered the iGaming space in 2018, following his professional sports coverage career which began in 2015. His extensive experience in the field provides valuable insights into the potential implications of AB 5447 for the iGaming industry in New Jersey.
[1] Source: NJ Online Gambling [4] Source: PlayNJ
*Note: The term "News Insights 2" was mentioned but its context is not provided, so it cannot be factualized as a standalone fact. Richard Janvrin started writing as a teenager, but this information was not included in the provided bullet points.
- The iGaming industry in New Jersey is awaiting Governor Phil Murphy's decision on AB 5447, a bill that aims to ban sweepstakes-style online casinos.
- Sweepstakes casinos, such as Funzpoints, Spree, and Chumba Casino, are either exiting or winding down operations in anticipation of the new law.
- If signed, sweepstakes gambling platforms will face closure or exit from New Jersey’s market, potentially leading to increased revenue for real-money online casinos and sportsbooks.
- The bill's passage has the potential to reshape the online gambling landscape, consolidating the state’s gaming ecosystem around traditional iGaming and sports betting models.
- Richard Janvrin, an experienced iGaming journalist who covers news, reviews, bonuses, and legal matters, may witness the impact of this regulatory tightening in the industry.
- AB 5447 follows a trend of increasing regulatory scrutiny on sweepstakes casinos and could set a precedent for other states to follow.
- The move towards tighter regulations on online gambling could have wider implications, sparking discussions on policy and legislation in the field of politics and gambling trends.
- Regardless of the bill’s impact on the gambling industry, responsible gambling remains a critical issue, and promoting safe practices is crucial to ensure the wellbeing of gamblers.
