N.J.S.A. 52:17B-139.16 — Sweepstakes, lawful parameters.

52:17B-139.16 Sweepstakes, lawful parameters. 3. a. Notwithstanding the provisions of section 2 of P.L.2025, c.128 (C.52:17B-139.15) or any other law or regulation to the contrary, offering, conducting, or participating in a sweepstakes that meets the requirements of subsection b. of this section shall not constitute unlawful gambling in violation of Article IV, Section VII, paragraph 2 of the New Jersey Constitution, and shall not subject the participant or the operator or sponsor of the sweepstakes or any officer, employee, or agent of the operator or sponsor, to any civil or criminal liability under the laws of this State that prohibit gambling. b. A sweepstakes in which a person present in New Jersey may participate by paying or proffering something of value for the opportunity to win or receive a prize or prize equivalent shall not be deemed to violate section 2 of P.L.2025, c.128 (C.52:17B-139.15) if: (1) there exists a method of entry to participate in the sweepstakes at no cost to the participant; (2) any method of entry that is not free to the participant is ancillary to the purchase of food, non-alcoholic beverages, or other merchandise, such as mugs, trinkets, or mementos, not exceeding $20 in value or such other amount to be determined by the Director of the Division of Consumer Affairs in the Department of Law and Public Safety, provided, however, that such other items of merchandise shall not include coins, tokens, or online credits that have no value other than permitting sweepstakes entry or that are able to be exchanged for money or merchandise from the sweepstakes operator or an affiliated company; (3) determination of the winner or winners of the sweepstakes is not in any way based on the results of any sports event or contest, the performance or any facet thereof of any individual or team, or the performance of a combination of any individuals or teams in any sports event or contest, unless the sole and exclusive method of entry to participate in the sweepstakes is at no cost to all participants; (4) the sweepstakes entry form or the website or application used to enter an online or telephone sweepstakes clearly discloses to participants the rules of the sweepstakes, the odds of a winning any and all prizes, unless the sweepstakes permits an unlimited number of entries, in which case the sponsor or operator shall disclose that the sweepstakes permits unlimited entry, and the nature and number of any prizes that may be awarded; (5) the value of any cash or merchandise prize shall be income for purposes of New Jersey income tax; (6) no person under the age of 18 shall be permitted to claim a sweepstakes prize exceeding $1,000 in value without the consent of the person�s parent or guardian; and (7) the odds of winning any particular prize shall be identical regardless of whether the contest was entered by purchasing an entry or by entering at no cost to the participant. c. The Division of Consumer Affairs may adopt rules and regulations pursuant to the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.) to carry out the purposes of sections 1 through 13 of P.L.2025, c.128 (C.52:17B-139.14 through 52:17B-139.26). L.2025, c.128, s.3.

This is the verbatim text of N.J.S.A. 52:17B-139.16, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.