This bill establishes online sweepstakes casinos as a recognized form of internet gaming in New Jersey, requiring them to be licensed, regulated, and taxed under the existing internet gaming framework. It defines an online sweepstakes casino as a platform that allows users to engage in games without an initial monetary investment, primarily using free currency, and offers promotional gaming credits redeemable for cash or prizes. Operators must be licensed as casino service industry enterprises and are subject to independent third-party audits to ensure operational integrity and financial stability, both before obtaining a license and bi-annually thereafter.

The legislation amends existing laws to include regulations specific to online sweepstakes casinos, mandating that these operators partner with a licensed casino and secure an internet gaming permit. The Division of Gaming Enforcement is granted authority to collaborate with law enforcement to investigate unauthorized online sweepstakes casinos and restrict access to them. Licensed operators will be required to adhere to the same legal standards as other internet gaming entities, including conducting employee background checks, enforcing age restrictions, and complying with licensing and tax obligations. The bill also retains penalties for illegal internet gaming activities, ensuring a comprehensive regulatory framework for this emerging sector.

Statutes affected:
Introduced: 5:12-12, 5:12-28.2, 5:12-38, 5:12-92, 5:12-95.30, 5:12-95.32