A bill banning sweepstakes gaming operators in Connecticut is gaining steam.
The Connecticut Senate’s General Law Committee unanimously passed SB 1235 by a vote of 22-0 on Monday. The bill was filed with the Legislation Commissioner's Office following a joint favorable substitute action.
SB 1235 contains several gambling-related clauses, including one that states “certain persons conducting sweepstakes or promotional drawings shall not allow or facilitate participation in certain real or simulated online casino gaming or sports wagering.”
The bill, recommended by the Connecticut Department of Consumer Protection, also makes operating an illegal gambling business a Class D felony. Those are punishable by up to five years in prison and a $5,000 fine.
Fighting sweepstakes
The Constitution State is one of several jurisdictions looking to make the sweepstakes form of online gambling illegal. Connecticut already has legal online casinos and is looking to keep the free-coin versions out.
Sweepstakes casinos and sportsbooks allow users to play for free, but they can purchase more coins and exchange them for cash and prizes, which has drawn the attention of regulators. That’s especially concerning to ones in legal iGaming states as sweepstakes companies are taking in money that would be going to taxed and regulated operators. Sweepstakes businesses are not.
Maryland, New Jersey, New York, and Mississippi also have legislation filed that would ban sweepstakes gaming.
Other legislation
Among other stipulations, SB 1235 calls for a prohibition on lottery ticket resales and ticket courier services and redefines many gaming terms.
The bill wants to modify the provisions on Connecticut’s in-state college teams. Currently, schools like UConn can only be wagered on during postseason play. The bill also wants to authorize certain boxing and MMA wagering and ban certain advertising.
The General Law Committee also passed SB 1464, which would allow Connecticut to enter multijurisdictional poker compacts, address sports betting errors, and establish maximum wagers for online sports betting.
In the House, the General Law Committee approved HB 5269, a bill that prohibits gaming entities from offering financial incentives to induce gambling.
NEW: Connecticut General Law Committee approves bills: (1) allowing the Governor to enter into multijurisdictional Internet poker compacts (SB 1464); and (2) prohibiting the offering of financial incentives in order to induce individuals to engage in gaming (HB 5269). 21-0 vote. pic.twitter.com/ZIvw4NpRMX
— Daniel Wallach (@WALLACHLEGAL) March 25, 2025
