After the Connecticut Senate voted unanimously to pass a law banning online sweepstakes casinos, the House followed suit with a unanimous approval of their own, and the bill now needs the signature of Governor Ned Lamont.
No Online Sweepstakes in Connecticut
Last month, the Connecticut Senate voted 36-0 to pass Senate Bill 1235, which would not only make it unlawful for online sweepstakes to operate but also ban the use of third-party lottery couriers in the Nutmeg State. The House also passed the bill 146-0 on Tuesday, with the session running out the following day. The governor is expected to sign the legislation.
Violation of SB 1235 would result in a Class D felony, carrying fines of up to $5,000 and possibly up to five years in prison. One of the byproducts of the bill allows the governor to enter into a Multi-State Internet Gaming Agreement and possibly alter the current law, allowing Connecticut bettors to bet on in-state college teams during tournament play.
Bill Targets Loopholes
Many, if not all, of the sweepstakes companies currently circumvent the law by allowing free plays on their casinos but then, contrary to online sportsbooks, they add a dual currency that allows their users to buy tokens to continue to gamble on their sites. The prizes are paid in awards or actual cash back to the bettors.
Assuming the bill is signed by Governor Ned Lamont, the prohibition would take effect on October 1, 2025, and the bill expressly bans the use of this mechanism “in certain real or simulated online casino gaming or sports wagering.”
It should be noted that grocery stores are exempt from using a simulated online casino to promote a sale, “provided such sweepstakes is related to the sale of groceries, the prize is not redeemed or redeemable for cash, and the prize is only used as a discount to reduce the price of items purchased from such retail grocery chain.”
Connecticut Just the Latest
Bills have been cropping up throughout the country to ban online sweepstakes as they are cannibalizing a portion of the iGaming business, which would otherwise go to existing licensed online casinos or those that may become active in the future when an iGaming bill is passed.
Nevada and Louisiana have also recently passed bills banning online sweepstakes but are awaiting their governors’ signatures. However, Montana Gov. Greg Gianforte signed the first prohibition bill into law, Senate Bill 555, into law last month.
Although Montana’s Senate Bill 555 stops short of specifically naming the sweepstakes operators, it does articulate the prohibition as “any platform, website, or application that knowingly transmits or receives gambling information, allows consumers to place a bet or wager using any form of currency, and makes payouts of any form of currency.”
The Social and Promotional Games Association (SPGA) criticized the new law, and a spokesperson stated: “Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans. It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”
