What the law bans
A5447, now P.L. 2025, c. 128, targets online games that simulate casino play or sports betting and award prizes through “a dual currency system of payment that allows a participant to exchange the currency for a prize.” That’s the model sweepstakes casinos used: you buy Gold Coins to play for fun and receive “free” Sweeps Coins that can be redeemed for cash.
The same law also made several related practices illegal:
- Proxy betting: placing a bet of $1,000 or more for someone else who takes 10% or more of the winnings.
- Unlicensed online gambling sites: running one is a third-degree crime.
- Using someone else’s betting account, and betting on inside information or rigged events.
Genuine promotional sweepstakes, such as a soda company’s free-entry prize draw, are not affected.
Penalties
| Violation | Enforced by | Penalty |
|---|---|---|
| Running a prohibited sweepstakes | Division of Consumer Affairs | Up to $100,000 for a first offense, $250,000 after that; every day counts as a new offense |
| Unlawful gambling | Division of Gaming Enforcement | Up to $10,000, then $25,000 |
| Ignoring a cease-and-desist | DCA or DGE | Up to $25,000 per violation |
| Operating an online gambling resort | Criminal courts | Third-degree crime, $50,000 to $100,000 fine |
The sweepstakes penalties fall on operators, not players.
What happened to the big sweepstakes brands
Most dual-currency sites had already left New Jersey by the time the bill became law. Stake.us, High 5 Casino and the B-Two brands (McLuck, Mega Bonanza, Hello Millions) pulled out early. VGW, which runs Chumba Casino, LuckyLand Slots and Global Poker, phased out New Jersey in three steps in summer 2025: players stopped earning Sweeps Coins on July 29, couldn’t play with them from August 26, and lost the ability to redeem them after September 24. Gold Coin play, with no prizes, continued.
The law includes no rules for leftover balances. Each operator set its own redemption deadline, and some gave players only days’ notice.
Free-play social casinos
Social casinos that offer slots and table games with no way to win money or prizes are still legal in New Jersey. You can buy virtual coins to keep playing, but nothing can be redeemed. If a “social casino” uses a second currency you can swap for cash or gift cards, it falls under the ban. Single-currency sites that pay prizes are a grey area regulators haven’t addressed.
Legal ways to play casino games in New Jersey
New Jersey has the country’s most developed regulated online casino market, so there’s little reason to use a sweepstakes site:
- Licensed online casinos: around 30 real-money sites regulated by the Division of Gaming Enforcement, with tested games, protected player funds and access to the state’s self-exclusion program. See our NJ online casinos guide.
- No-deposit bonuses: some licensed NJ casinos, such as Caesars Palace Online, give new players a small amount of bonus credit without a deposit, which is the closest legal equivalent to free Sweeps Coins.
- Free-play modes: many licensed casinos let you try slots in demo mode before playing for real money.
Could sweepstakes casinos come back?
Possibly, as licensed operators. Sen. Joseph Cryan introduced S1500 in January 2026, which would classify sweepstakes casinos as internet gaming, require DGE licensing and tax them like online casinos. The bill is in committee and hasn’t advanced.
FAQ
Are sweepstakes casinos legal in New Jersey?
No. A5447 banned dual-currency sweepstakes casinos on August 15, 2025.
Can I still play Chumba Casino in New Jersey?
Only with Gold Coins, which have no cash value. VGW ended Sweeps Coins play and redemptions in New Jersey in 2025.
Will I get in trouble for playing at a sweepstakes casino?
The law’s penalties are aimed at operators. But an operator breaking state law may not pay out, and you have no regulator to complain to.
Are social casinos legal in NJ?
Yes, if nothing can be exchanged for money or prizes.
What are the legal alternatives to sweepstakes casinos in New Jersey?
DGE-licensed online casinos, some of which offer no-deposit bonuses to new players aged 21 and over.