This bill establishes online sweepstakes casinos as a recognized form of internet gaming in New Jersey, mandating that they 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 of these casinos are required to be licensed as casino service industry enterprises and must undergo independent third-party audits to ensure their operational integrity and financial stability, both before obtaining a license and bi-annually thereafter.

The legislation amends existing laws to include specific regulations for online sweepstakes casinos, such as the requirement to partner with a licensed casino and secure an internet gaming permit. It also grants the Division of Gaming Enforcement the authority to collaborate with law enforcement to investigate unauthorized online sweepstakes casinos and restrict access to them. The bill ensures that licensed operators adhere to the same legal standards as other internet gaming entities, including conducting employee background checks and implementing age verification measures, while maintaining penalties for unlawful gaming activities. Key insertions include definitions and requirements for online sweepstakes casinos, along with the stipulation for independent audits, while certain outdated provisions have been deleted to streamline the regulatory process.

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