A New Jersey state senator, Sen. Joseph P. Cryan, has introduced legislation aimed at regulating dual-currency sweepstakes gaming platforms that offer casino-style games using virtual currencies. The proposal would bring these platforms under the state’s existing internet gaming regulatory framework rather than leaving them unregulated.
Under the proposed legislation, sweepstakes gaming operators would be required to meet the same regulatory standards as licensed iGaming companies operating in New Jersey. Participation would be limited to individuals aged 21 and older, while operators would be obligated to implement age-verification measures for all users.
The bill would also subject sweepstakes platforms to New Jersey’s existing iGaming tax structure, applying the 19% tax rate on gross gaming revenue.
The legislation formally outlines what constitutes a dual-currency sweepstakes model, describing games that resemble authorized gambling in structure or odds but are primarily played using free virtual currency.
These platforms may award additional currencies or credits through purchases or specific activities, which can later be redeemed for cash, prizes, or other items of value.
The proposal is currently under review, where it will be evaluated before advancing further in the legislative process.
New Jersey previously took a hardline approach to dual-currency sweepstakes gaming when Gov. Phil Murphy signed legislation last August outlawing the model entirely.
That law, backed by bills approved by both chambers of the Legislature, imposed strict penalties on operators. It positioned New Jersey as one of the few states to formally prohibit sweepstakes-style casino games.
The existing statute broadly defines sweepstakes as promotional or marketing games, online or in person, that award items of value through mechanisms such as dual-currency systems, even when participation does not require a direct wager. While limited exceptions were carved out for sweepstakes tied to purchases like food or non-alcoholic beverages, most gaming-style sweepstakes were effectively shut down.
Operators who violate the law face steep financial consequences, including six-figure fines, escalating penalties for repeat offenses, and additional fines for ignoring cease-and-desist orders.
The newly proposed legislation signals a potential shift away from an outright ban toward a regulated framework. Rather than prohibiting dual-currency sweepstakes altogether, the bill would offer a path for compliant operators to function legally under the state’s iGaming rules.
If enacted, it could transform an activity once treated as unlawful into one subject to licensing, taxation, and oversight, marking a significant change in how New Jersey approaches sweepstakes gaming.
