A new proposal in New Jersey could reopen the door for sweepstakes casinos—but only under strict state rules. Senate Bill 1500 was introduced on Jan. 13, 2026 by Sen. Joseph P. Cryan. Instead of treating sweepstakes sites as illegal, the bill would classify them as internet gaming, meaning they would need licenses, oversight, and would pay taxes like other online casinos.
The bill is still early in the process and must move through committee hearings and votes before anything changes. But it signals a new debate in a state that only recently pushed sweepstakes-style casino sites out.
Why New Jersey Banned Sweepstakes Casinos Last Year
In August 2025, Gov. Phil Murphy signed a law that banned the “sweepstakes model of wagering” in New Jersey. Supporters of the ban said many sites used a system that looked like gambling, even if it was framed as a promotion. The law also set penalties for unlawful gambling operations and gave enforcement roles to state agencies that oversee gaming and consumer protection.
That ban led many sweepstakes casino operators to stop offering prize-style play in New Jersey. Some forms of “free” promotions can still exist, but only in limited ways that do not resemble casino gambling for cash-like prizes.
Since then, the state’s legal online gambling market has continued to grow, and New Jersey has also raised taxes on online gaming. In other words, New Jersey has been moving toward a tighter, more regulated approach to internet gambling overall.
What Senate Bill 1500 Would Change
SB 1500 would flip the state’s approach from “ban” to “regulate.” The bill would treat the legality of online sweepstakes casinos as part of the same system that controls legal internet casino gaming. It includes a detailed definition that focuses on two things: games played mainly with free currency, and the awarding of other credits that can be redeemed for cash, prizes, or something of value.
Under this plan, sweepstakes casinos would not be allowed to operate freely on their own. The bill framework says a sweepstakes operator would need to follow a process similar to other online casino products in New Jersey. That includes working within the state’s existing licensing structure and meeting regulatory standards like background checks and age controls.
A major part of the concept is oversight and accountability. The bill also talks about investigating unauthorized operators and working with outside partners, including telecom providers, to limit access to sites that try to operate without approval.
On taxes, the bill treats sweepstakes casino revenue like internet gaming gross revenue. That matters because New Jersey’s internet gaming tax rate is currently 19.75%, so regulated sweepstakes casinos would likely be taxed in the same way as other online casino products.
If it became law, the bill would take effect 30 days after it is enacted.
What Happens Next and What It Could Mean for Players
Right now, SB 1500 has been referred to a Senate committee focused on state government and wagering issues. That means it needs a hearing and votes before it can move forward. Lawmakers could also amend the bill, narrowing or expanding what counts as a sweepstakes casino and what requirements apply.
Supporters of regulation may argue that if sweepstakes-style gaming exists anyway, New Jersey should bring it into the legal system—so the state can require age checks, fairness standards, clear terms, and responsible gaming tools. Critics may argue that sweepstakes casinos still look too similar to real-money gambling, and that a return could blur the lines New Jersey tried to draw in 2025.
For players, nothing changes today. Sweepstakes casinos are still restricted under the existing ban. If the bill advances, the biggest change would be that some platforms could return—but only if they meet New Jersey licensing rules, partner properly, and operate under state oversight. The next key update to watch is whether the bill gets a committee hearing and whether lawmakers push it forward this session.