• New Jersey becomes the latest state to press on against the sweepstakes sector
• A pair of senators argues that the sector is using roundabout ways to skirt gambling operations
• SB 4282 has been voted out of a Senate committee, with a still long road to go

Anti-sweepstakes legislation is gaining ground in the United States, after Montana became the first jurisdiction in the country to outright ban this model of operation.

Although others faltered in passing successful restrictive measures against the sector, among which was Florida, New Jersey is determined to see the matter through.

Sweepstakes on slippery footing in New Jersey

Last week, the Senate State Government, Wagering, Tourism, & Historic Preservation Committee approved Senate Bill 4282, which will see the sweepstakes model of wagering prohibited, as per an update shared on the Senate Democrats website.

The bill is sponsored by Senator John Burzichelli and Senator John McKeon, and it is looking to establish stronger penalties against gambling that is deemed illegal.

The senators are also looking to empower state regulators, and specifically the Division of Consumer Affairs and the Division of Gaming Enforcement, as they want more done against the sector. The two bodies would have expanded powers and also be able to better coordinate for mutual investigations of suspected wrongdoers.

Only recently, the Connecticut Department of Consumer Protection won a settlement with High5Games for $1.5m. SB 4282 hardly minces its words in describing the nature of sweepstakes gaming operations, calling them illegal and an attempt to skirt existing gambling laws.

Should the bill gain approval, it will enforce stricter rules and tougher penalties on operators of such websites. Commenting on this legislation, Senator Burzichellihad this to say:

"New Jersey has a proud tradition of responsible gaming regulation, and we will not allow bad actors to exploit legal loopholes at the expense of consumers. This bill will ensure that our laws are clear, our penalties are stronger, and that we have the tools necessary to shut down illegal sweepstakes gambling operations before they can cause further harm."

Senator McKeon has highlighted the need to act preemptively, as young people are particularly vulnerable, he argued, maintaining that sweepstakes were a ploy to make vulnerable groups spend money on illicit gambling practices.

Sweepstakes are compared to illegal gambling in the new bill

"This bill will put safeguards in place to protect them and others from being exploited and drawn into gambling activities that could haunt them for years to come," he added. In the meantime, the sweepstakes sector has been up in arms as well.

VGW, a sweepstakes major, has launched the Social Gaming Leadership Alliance, an organization that seeks to set the record straight about the sector, work closely with legislators, and ultimately ensure that Americans are able to enjoy the games they always have.

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