Casino Ban in New Jersey, Effective August 14, With No Comment from the Governor
In a move aimed at protecting the state's regulated gaming market and addressing concerns over proxy gambling models, New Jersey has officially banned sweepstakes casinos such as Chumba Casino, LuckyLand Slots, Pulsz, and McLuck. The ban, which takes effect on August 14, 2025, prohibits paid sweepstakes casino-style games that award cash or prizes of value using dual-currency systems.
The ban came into effect after New Jersey lawmakers passed legislation on June 30, 2025, which Governor Phil Murphy neither signed nor vetoed, allowing the bill to automatically become law. This effectively stops these sweepstakes casinos from operating legally in the state. Operators like VGW, which owns Chumba and LuckyLand Slots, have already begun withdrawing from New Jersey, updating terms to exclude the state.
While the ban targets paid sweepstakes casino games with real cash prizes, it still permits promotions without costs to play and low-value prizes (under $20), so not all sweepstakes are prohibited. For players in New Jersey, this means no more access to sweepstakes casinos that allow cash withdrawals, marking a significant regulatory shift.
Enforcement of the ban will be carried out by the state's Division of Gaming Enforcement and Division of Consumer Affairs. Violators face penalties of up to $100,000 for a first offense and $250,000 for repeat violations.
With the ban taking effect, remaining operators will have three main options: exit the market, pivot to low-value prize promotions, or develop alternative formats like skill-based games or DFS-style competitions. Companies that adapt quickly and creatively stand the best chance of survival in the new regulatory environment. Compliance for these companies would require stripping away core revenue drivers: virtual currency purchases, prize redemptions, and casino-style gameplay. Those that cling to now-prohibited mechanics risk regulatory penalties and reputational damage.
The change will mark the end of easy access to sweepstakes casinos offering cash-out winnings for New Jersey players. Similar exits are expected from Pulsz, McLuck, and other major sweeps brands before Aug. 14. Assemblyman Clinton Calabrese, who initially proposed legislation to regulate and legalize sweepstakes casinos, later introduced a bill to ban them.
The ban defines a prohibited sweepstakes casino as any promotional game that awards something of value. The era of unchecked growth in the sweepstakes industry may be coming to a close, as New Jersey leads the way in regulating this sector of online gaming.
Online casinos that offer casino-games will need to adjust their business models following the ban on sweepstakes casinos, such as Chumba Casino, LuckyLand Slots, Pulsz, and McLuck, in New Jersey. From August 14, 2025, casino-and-gambling operators found to be offering paid sweepstakes casino-style games that award cash or prizes of value using dual-currency systems will face penalties.
