Connecticut lawmakers voted in favor of a bill banning sweepstakes casinos, leaving only a sign-off from Gov. Neil Lamont to make it into law.
The Connecticut House of Representatives voted 146-0 in favor of SB1235, marking the final stage in the legislative process before the governor’s approval. If signed off by Lamont, as expected, the legislation will take effect from October 1 this year.
The bill previously passed through the Senate in another unanimous vote, 36-0, on May 23. Given the overwhelming bipartisan support it is highly unlikely Gov. Lamont will not sign off on the legislation.
Sweeping changes to gambling laws
The bill prohibits individuals and companies from conducting or promoting “a sweepstakes or a promotional drawing…that uses a simulated gambling device or allows or facilitates participation in any real or simulated online casino gaming or sports wagering.”
Operating an illegal gambling business will be classed as a Class D felony, punishable by up to five years in prison and a $5,000 fine. As the bill has gained progress, many sweepstakes casinos have already exited the state. VGW withdrew operations last year, and Stake followed in February this year after the bill was introduced.
The bill attempts to distinguish gambling platforms from other stores by adding the exception that businesses may run sweepstakes style promotions “provided such sweepstakes is related to the sale of groceries, the prize is not redeemed or redeemable for case, and the prize is only used as a discount to reduce the price of items purchase from such retail grocery chain.”
A growing number of states are moving forward with legislation to curb the rapid growth of sweepstakes casinos. Unregulated casino platforms are estimated to have generated $67 billion in revenue last year. Montana has already passed a ban, while Louisiana is also on the verge of enacting legislation.
Ban backed by DCP and tribal casinos
DCP Commissioner Bryan Cafferelli expressed support for SB 1235, stating that it “will benefit the department by improving our regulatory oversight of the gaming industry.”
Additionally, the Mohegan Tribe, has been part of the process in drafting the legislation to meet its interests and protect regulated gambling through the tribe. Connecticut online casinos are legal through the Mohegan Tribe and the Mashantucket Pequot Tribal Nation, via partnerships with FanDuel and DraftKings respectively.
Revenue streams have been growing steadily since legalization in 2021 as seen in the table below:
| Fiscal Year | Online Casino Revenue (GGR) | Tax Collected (18%) |
|---|---|---|
| 2021–2022 | $176.8 million | $31.8 million |
| 2022–2023 | $232.5 million | $41.9 million |
| 2023–2024 | $275.0 million | $49.5 million |
| Total | $684.3 million | $123.2 million |
Connecticut imposes an 18% tax on online casino gross gaming revenue, which is set to increase to 20% in 2026.
Other changes to gambling laws
The bill will also prohibit state lottery couriers from operating. Similar bans on third-party lottery sales have been enacted in Florida and California, while Texas is also advocating for a ban amid their lottery scandal.
In addition, the bill has a series of measures to enforce stricter regulations on gambling companies, including confidentiality in criminal background checks, increased transparaency in record-keeping, advertising restrictions, and administrative changes.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
