Lawmakers in Connecticut Focus on Regulating Sweepstakes-Based Gambling Establishments
Connecticut Bans Online Sweepstakes Casinos and Lottery Courier Services
Connecticut has become the second state after Montana to outlaw online sweepstakes casinos, following the signing of Senate Bill 1235 (SB 1235) into law by Governor Ned Lamont on June 4, 2025. The ban will take effect on October 1, 2025.
The key provisions of SB 1235 include a prohibition on operating online sweepstakes-style casinos within Connecticut and a ban on lottery courier services, which facilitate indirect lottery ticket purchases. The law authorizes legal action against unregulated online gambling operators, as demonstrated by a preceding $1.5 million settlement with an operator who violated state regulations.
The bill passed with strong bipartisan support, including a unanimous 36-0 vote in the Connecticut Senate. This legislative move aligns with a broader crackdown by various states on unregulated sweepstakes casinos, which have been targeted with cease-and-desist orders and enforcement actions nationwide due to concerns that these platforms constitute illegal gambling despite their marketing as sweepstakes or social gaming.
Sweepstakes casinos in Connecticut are increasingly under scrutiny due to their ability to avoid traditional oversight by using virtual currencies or free-entry models. Critics argue that these casinos obscure the fact that they are running unlicensed online casinos by using promotional marketing and complex funding schemes.
If passed by the House of Representatives, SB 1235 will expand the Department of Consumer Protection's powers to investigate and enforce regulatory breaches. Offenders of the proposed law would face harsh penalties, with infractions elevated to Class D felonies, punishable by up to five years in prison and a $5,000 penalty.
The original draft of SB 1235 included a provision banning third-party lottery courier services, but this was removed after a floor amendment. The bill no longer includes language that would allow the governor to enter interstate gaming compacts, following revisions to its original form.
Gambling operators have voiced concerns about the lack of oversight, licensing fees, and compliance burdens faced by sweepstakes. However, proponents of the bill argue that it is necessary to preserve the integrity of the state-regulated market while safeguarding consumers from potential predatory practices.
Several other states are considering similar measures to regulate or ban sweepstakes casinos. The fate of SB 1235 now lies with the House of Representatives, as lawmakers have less than two weeks to determine its future. If passed, SB 1235 will mark a significant step towards regulating online gambling in Connecticut.
References:
- Connecticut Post
- Hartford Courant
- NBC Connecticut
- The Day
- ESPN
- The ban on online sweepstakes casinos and lottery courier services in Connecticut, as outlined in SB 1235, will impact various casino-and-gambling operators, given the law's enforcement against unregulated gambling.
- The passing of SB 1235 indicates a growing trend in gambling-trends, with states taking stricter measures against unregulated sweepstakes casinos, a concern that has been raised in general-news outlets and crime-and-justice discussions.
- Some casino personalities have expressed concerns about the potential burdens of oversight, licensing fees, and compliance for sweepstakes casinos, but supporters of the bill argue that policy-and-legislation is essential to protect consumers and maintain a fair market.
- The Connecticut Senate's unanimous vote in favor of SB 1235 is an indication of the state's position on the intersection of politics and casino-culture, with lawmakers aiming to safeguard their constituents while promoting a responsible gambling environment.
- The evolution of online gaming, including the use of virtual currencies and free-entry models by sweepstakes casinos, has raised questions about the blurred lines between sweepstakes and casino-games, leading to increased scrutiny and potential legislative action on casino-culture and regulation.
