Connecticut Lawmakers Target Sweepstakes Casinos

The Connecticut Senate has taken decisive action to tighten control over what it perceives as unregulated gambling activity, unanimously approving a bill that targets online sweepstakes casinos and other promotional games. Senate Bill 1235, passed on May 22 with a 36-0 vote, is now headed to the House of Representatives before the legislature adjourns on June 4.

The Legislation Went Through Several Revisions

According to the bill’s current version, sweepstakes-style gaming that mimics online casinos or sports wagering under any form faces a complete ban. The legislation also envisions harsh penalties for offenders, elevating infractions to Class D felonies, punishable by up to five years in prison and a $5,000 penalty. Such measures would significantly curtail most sweepstakes operations in the state.

The bill prohibits anyone not licensed to operate online casino gaming or sports wagering from conducting or promoting a sweepstakes or promotional drawing that allows or facilitates participation in real or simulated online casino gaming or sports wagering.

Senate Bill 1235

The original draft of SB 1235 included language banning third-party lottery courier services. However, lawmakers took that provision out after a floor amendment. Further revisions also stripped language that would allow the governor to enter interstate gaming compacts. These amendments mostly limited the jurisdiction’s scope to sweepstakes and traditional gambling.

The Department of Consumer Protection, which oversees gambling regulation in Connecticut, supported the bill. If the legislation passes into law, it will expand the authority’s powers to investigate and enforce potential regulatory breaches. The fate of SB 1235 now lies with the House, as lawmakers have less than two weeks to determine the future of sweepstakes in Connecticut.

Sweepstakes Face Rising Controversy Across the USA

Connecticut officials have become increasingly concerned about online platforms that offer gambling-like experiences while skirting regulations. Sweepstakes casinos avoid traditional oversight by utilizing virtual currencies or offering prizes via free-entry models. While the new bill leaves room for promotions like grocery-linked contests that do not award cash prizes, most major sweepstakes operators will likely have to leave the state.

Sweepstakes casinos have drawn nationwide criticism for allegedly operating in legal gray areas. Critics argue that such companies obscure the fact that they are running unlicensed online casinos by using promotional marketing and complex funding schemes. Gambling operators have also voiced their concerns, noting that sweepstakes face none of the oversight, licensing fees, or compliance burdens.
Connecticut’s move aligns with a broader national trend.

Montana recently became the first state to completely outlaw sweepstakes casinos, with several other states considering similar measures. Connecticut lawmakers note that the new legislation should preserve the integrity of the state-regulated market while safeguarding consumers from potential predatory practices.