Editor
A sweepstakes gaming ban was swiftly passed in New Jersey before the July 1 deadline, despite a last-ditch plea from the head of the World Poker Tour. There was effectively no debate about it; just a quick vote that passed by a wide margin. New Jersey has regulated real-money casinos, a factor that has tended to motivate similar states to force out the sweepstakes industry, though more often through regulatory cease-and-desist letters than legislation.
The bill, A5547, passed in both chambers in a single day. It “prohibits the sweepstakes model of wagering: establishes new penalties for unlawful gambling operations and practices,” according to the summary text.
The New Jersey Assembly voted 69 to 10 in favor of the bill, with one abstention. The split in the Senate was proportionally almost identical, at 34 to 5. Now the bill goes to Governor Phil Murphy’s desk for signing. No veto is expected.
Adam Pliska, CEO of the World Poker Tour (WPT), spoke out against the potential ban, flying to New Jersey to appear in person. His goal was to convince legislators to reconsider the bill, which will force out WPT’s sweepstakes products, ClubWPT and ClubWPT Gold.
We have never had an issue. We have never had a lawsuit. We’ve never had a cease and desist.
“We’ve operated a sweepstakes product for over 15 years,” Pliska told lawmakers, “and so I just want to make myself available to the committee, if anybody would like to continue to explore this idea that there is more revenue to be found.”
Pliska also noted that sweeps-model sites could be a potential revenue stream for the state and that WPT events bring exposure to the Borgata in Atlantic City. Before the introduction of the ban bill, New Jersey lawmakers had considered and rejected a proposal to regulate the sites under the same framework as real-money online casinos.
Impact of Losing Club WPT for New Jersey Players
The sweepstakes industry now has two trade groups advocating on its behalf—the Social and Promotional Gaming Association and the Social Gaming Leadership Alliance. However, this is the first time WPT has lent its voice to the cause.
Pliska’s pleas were to no avail, however. As a result, New Jersey online poker players will soon have fewer options than before.
Most online poker players prefer regulated real-money sites where they’re available. However, losing ClubWPT does take a couple of things off the table. New Jerseyans looking to participate in live WPT events will miss having a way to qualify for those events online. Meanwhile, the regulated sites only allow players to compete against their peers in a few other sites, while sweepstakes poker is nearly nationwide.
ClubWPT Gold has made waves in recent days with the controversy in the WSOP Millionaire Maker following the $1 million promotion from the sweeps poker site.
Sweeps Ban Sweeping the Nation
New Jersey is now the seventh state to pass a bill curtailing the sweepstakes industry. The other states that have banned dual-currency sweepstakes sites are:
- Mississippi
- Maryland
- Connecticut
- Nevada
- Florida
- Most recently, New York
Despite the prohibitions, the popularity of sweepstakes gaming remains high around the country. Most legislative efforts to expand real-money online poker and casino gaming since 2021 have failed, though Maine could become an exception if its bill can avoid the Governor’s veto. The sweepstakes industry emerged in response to high national demand for a product that is still only legal in seven states in its traditional form.
