Connecticut became the second state to ban sweepstakes casinos after Governor Ned Lamont signed off on new legislation.
Senate Bill 1235 will come into effect on October 1 and will prohibit anyone to “conduct or promote a sweepstakes or a promotional drawing” that “allows or facilitates participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed”.
Under the terms of the legislation, 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.
The bill had previously received unanimous approval in both the House and the Senate in votes of 146-0 and 36-0, respectively. In addition to banning sweepstakes, it also prohibits lottery couriers from selling tickets to the state lottery. There are other minor changes to definitions of gambling terms, increased powers for the Department of Consumer Protection (DCP), and Connecticut residents can also now wager on Connecticut college teams to win tournaments, but not individual matches.
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.”
SGLA speaks out against the bill
The Social Gaming Leadership Alliance (SGLA), a lobby group for sweepstakes casinos led by VGW, criticized Lamont’s decision to sign off on the legislation.
The group posted on its X account
In the full statement, Executive Director Jeff Duncan stated, “It is disappointing that Connecticut residents have lost access to popular, free-to-play online games enjoyed by millions nationwide.
“It’s unfortunate that this legislation was hastily passed based on incomplete information with little attempt to engage with legitimate industry operators that prioritize player protections.
“The result is a win for the black market and other groups with vested interests that campaigned for this bill with falsehoods and misinformation. It is a loss for innovation, competition, free choice, and potential benefits for the State of Connecticut.”
VGW, who set up the SGLA, withdrew from Connecticut last year after being issued a cease-and-desist letter from the DCP. Other platforms have also withdrawn operations from the state, including Stake.us, who exited following the introduction of the now-approved bill.
The SGLA, along with the Social and Promotional Gaming Association (SPGA), consistently speak out against legislation targeting sweepstakes casinos, claiming that because they offer free-to-play games, this should prevent state lawmakers from classifying the businesses as illegal gambling.
Sweepstakes status in other states
Montana also passed legislation banning sweepstakes last month, and Louisiana looked set to do the same until Gov. Jeff Landry decided not to sign off on the bill that, like in Connecticut, had received unanimous approval in both the Senate and House. Landry cited the bill as being unnecessary as the state regulator already has the power to stop unregulated gambling sites.
The SGLA celebrated Landry’s decision, issuing a statement noting, “On behalf of the Social Gaming Leadership Alliance (SGLA) and the Louisiana residents who enjoy free-to-play online social games, we sincerely appreciate the opportunity to continue the conversation about online social gaming in Louisiana.
“Gov. Landry’s veto gives all stakeholders an opportunity to pursue a sensible solution to allow Louisiana residents to continue playing online social games, explore revenue streams for the state and create a licensing and regulatory environment which applies the highest standards of player protections and responsible social gaming.”
The New York Senate has also passed a bill that aims to prohibit sweepstakes and on its introduction, many operators exited the state in the last few months. New Jersey also has an active bill that could prohibit the platforms and legislation has been proposed in several other states.
Connecticut joins Montana as the only states to successfully pass legislation targeting sweepstakes, but stricter laws around online gambling also prohibit the platforms in Washington and Idaho. Gov. Lamont’s decision to sign off on Connecticut’s bill in the same week that Louisiana’s Governor chose not to enact similar legislation highlights the inconsistency in state laws which allow many sweepstakes platforms to continue operations.
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.
