Sportsbook collaborations with public colleges in New Jersey are prohibited, as suggested by the recently proposed Sweeps Bill.
In a significant move to regulate the online gambling market, New Jersey Governor Phil Murphy signed Bill A5447 into law on July 8, 2025. This legislation effectively bans sweepstakes-style online casinos that rely on a dual-currency system, bringing them in line with state regulations governing traditional online casinos.
The law, enacted due to concerns about oddsmakers colluding with universities to sign up students to gamble, prohibits public colleges and universities from partnering with sportsbooks. It also forbids advertising sportsbooks in their stadiums, facilities, digital, and broadcast sports content.
The dual-currency system used by these online sweepstakes casinos allows sweeps coins to be exchanged for cash or prizes from the sweepstakes operator or an affiliated company. Notable platforms that use this system include Chumba Casino, LuckyLand Slots, and Global Poker, which are backed by Virtual Gaming Worlds (VGW).
The law was passed by the New Jersey Legislature in a single session day on June 30, with 69-10 support in the General Assembly and 34-5 in the Senate. It is important to note that this law only affects partnerships between sportsbooks and public institutions of higher education, not private ones.
In 2019, Rutgers University struck a deal with William Hill (now Caesars Sportsbook) to allow the company to advertise its sports betting operations and help fund student-athlete scholarships. However, under the new law, such partnerships are now prohibited.
The sports betting marketing ban applies to a number of public colleges and universities, including Montclair State, Rowan, Kean, New Jersey Institute of Technology, Stockton, William Paterson, Thomas Edison State, The College of New Jersey, New Jersey City University, and Ramapo, in addition to Rutgers.
The law also aims to close the regulatory loophole that allowed sweepstakes casinos to operate in a gray area. As of late July 2025, other states have sent cease and desist letters to such platforms. Sweeps casinos continue to face legal scrutiny in numerous states, including Connecticut, Idaho, Montana, Nevada, and Washington.
It is worth noting that another gaming bill, Assembly Bill 5447/Senate Bill 4282, forwarded by the New Jersey Legislature in late June, aims to prohibit online sweepstakes casinos from operating within the state. However, as of July 10, 2025, at 12:27h, Governor Murphy has yet to act on this bill.
The ban on sweepstakes-style online casinos and sportsbook partnerships is part of Governor Murphy's administration's efforts to reinforce New Jersey’s position as a fully regulated online gambling market focused on licensed real-money operators. Prior to this law, New Jersey had a significant number of licensed real-money online casinos regulated by the New Jersey Division of Gaming Enforcement (DGE), which have operated legally since 2013 and continue to expand under tightened oversight.
In a notable instance, PointsBet, now acquired by Fanatics, paid the University of Colorado $30 for every new sports wagering account registered through the Buffaloes' affiliate referral program in 2022. Thousands of students were signed up by PointsBet, and the school received $30 per head for their business. However, under the new law, such partnerships are no longer permitted.
The law was last updated on July 10, 2025, at 12:10h. Bills to ban sweeps firms like VGW are making headway in several states, including California, New York, Arkansas, Florida, and Maryland. As the regulatory landscape continues to evolve, it will be interesting to see how these developments impact the online gambling industry.
- New Jersey Governor Phil Murphy signed a law banning sweepstakes-style online casinos on July 8, 2025, due to concerns about oddsmakers colluding with universities.
- The law forbids public colleges and universities from partnering with sportsbooks, as well as advertising sportsbooks in their stadiums or digital sports content.
- Notable platforms using a dual-currency system, such as Chumba Casino, LuckyLand Slots, and Global Poker, are backed by Virtual Gaming Worlds (VGW).
- Despite the ban, the law does not affect partnerships between sportsbooks and private institutions of higher education.
- Rutgers University, which had a partnership with William Hill (now Caesars Sportsbook), is now prohibited from such partnerships under the new law.
- The sports betting marketing ban applies to several public colleges and universities, including Montclair State, Rowan, Kean, New Jersey Institute of Technology, Stockton, William Paterson, Thomas Edison State, The College of New Jersey, New Jersey City University, Ramapo, and Rutgers.
- The law aims to close a regulatory loophole that allowed sweepstakes casinos to operate in a gray area, and similar laws are being considered in several other states.
- Another gaming bill aims to prohibit online sweepstakes casinos from operating within New Jersey, but as of July 10, 2025, at 12:27h, Governor Murphy has yet to act on this bill.
- The ban is part of Governor Murphy's administration's efforts to reinforce New Jersey’s position as a fully regulated online gambling market focused on licensed real-money operators.
