This bill aims to regulate online sweepstakes casinos in New Jersey by classifying them as a form of internet gaming, thereby requiring them to be licensed, overseen, and taxed under the existing internet gaming framework. It defines an online sweepstakes casino as a platform that allows users to play 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, with bi-annual updates necessary for license maintenance.

The legislation also amends existing laws by expanding the definition of "Casino Service Industry Enterprise" to include online sweepstakes casino operators and internet gaming software suppliers. It mandates that any business wishing to operate an online sweepstakes casino must obtain a casino service industry enterprise license and partner with a licensed casino to secure an internet gaming permit. The Division of Gaming Enforcement is granted authority to investigate unauthorized online sweepstakes casinos and work with law enforcement to restrict access to illegal operations. Licensed operators will be held to the same standards as other internet gaming operators, including employee background checks and age verification measures, while maintaining current penalties for unlawful internet gaming activities.

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