LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 5447

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JUNE 18, 2025

 

 

SUMMARY

 

Synopsis:

Prohibits sweepstakes model of wagering; establishes new penalties for unlawful gambling operations and practices; directs Division of Consumer Affairs and Division of Gaming Enforcement to enforce penalties.

Type of Impact:

Potential annual revenue increase to the State; annual State cost increase.

Agencies Affected:

Department of Law and Public Safety; the Judiciary

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual 

 

Potential State Revenue Increase

Indeterminate

 

State Cost Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) finds that broadening the scope of unlawful gambling practices and expanding and establishing penalties for such practices may result in indeterminate annual revenue increases to the State by virtue of the enforcement powers granted to the Division of Consumer Affairs and the Division of Gaming Enforcement in the Department of Law and Public Safety. 

·         The OLS anticipates that the Division of Consumer Affairs and the Division of Gaming Enforcement, in addition to the Judiciary, will also experience workload and administrative cost increases due to their expanded responsibilities.

 

BILL DESCRIPTION

 

      This bill prohibits unlawful gambling operations in this State, including a model of wagering frequently referred to as “sweepstakes,” and expands and establishes penalties for unlawful gambling operations and practices.

      The bill expands the scope of criminal conduct concerning the maintenance of a gambling resort to include the maintenance of an online gambling resort, and increases the penalty from a crime of the fourth degree to a crime of the third degree.  The bill increases the maximum penalty for maintaining a gambling resort from $25,000 to $50,000 and provides that the penalty for maintaining an online gambling resort shall be no less than $50,000 and no greater than $100,000.

      The bill also expands the definition of gambling within the criminal statutes to include the buying, selling, or trading something of value upon an agreement or understanding that the actor will receive something of value in the event of a certain outcome in a contest of chance.

      In addition, the bill expands the scope of conduct that would constitute the illegal rigging of publicly exhibited contests to include improper influences and sporting events.  The bill lowers the threshold for an illegal rigging” or “improper influencing violation to constitute a crime of the third or fourth degree by $500.

      The bill also revises the prohibition against swindling or cheating and makes it illegal to engage in proxy betting.

      Under the bill, the Division of Consumer Affairs is tasked with the regulation and enforcement of all provisions related to the conduct of sweepstakes in this State, and the Division of Gaming Enforcement is given the authority to enforce all other prohibitions against unlawful gambling.

      The bill authorizes the divisions, as appropriate, to: seek and obtain injunctive relief to halt any unlawful gambling operation; enforce civil penalties against the operators of unlawful gambling operations in the amount of $100,000 for the first offense and $250,000 for every subsequent offense; conduct investigations into the suspected operators and accomplices of unlawful gambling operations, including the issuance of subpoenas to collect necessary information and interview necessary parties; apply to the Superior Court for relief from parties who have refused to comply with subpoenas, including a finding of the parties in contempt of court and the revocation of any licenses or operating permits issued in the State; order that any moneys or property, real or personal, which have been acquired by means of an unlawful gambling operation be restored to any person in interest, and be returned in twice the amount to any senior citizen; issue cease and desist order upon a finding that an unlawful gambling operation is being conducted, and seek a civil penalty of $25,000 for each violation of a cease and desist order; and impose a lien on any property or assets held by a party who has been fined in accordance with the provisions of this bill in the preceding five years.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that broadening the scope of unlawful gambling practices and expanding and establishing penalties for such practices may result in indeterminate annual revenue increases to the State by virtue of the enforcement powers granted to the Division of Consumer Affairs and the Division of Gaming Enforcement.  The OLS lacks the informational basis to determine the frequency of violations that will result from the bill or the size of any fines that will be issued and collected by the State.

      The OLS anticipates that the Division of Consumer Affairs and the Division of Gaming Enforcement, in addition to the Judiciary, will also experience workload and administrative cost increases due to their expanded responsibilities under the bill.

 

 

Section:

State Government

Analyst:

Anna Harris

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).