Connecticut Congress Unanimously Approves Bill to Ban Sweepstakes Casinos

Connecticut is prepared to prohibit sweepstakes casinos from servicing online gamers inside state lines following the passing of a bill.

Both the Connecticut House and Senate unanimously approved Senate Bill 1235 by counts of 146-0 and 36-0. The House vote occurred on Tuesday, just a matter of days after the Senate signaled its approval.

Gov. Ned Lamont (D) can sign the bill into law immediately, let it become enacted by leaving it unsigned for 15 days, or veto the bill.

Massive changes could be on the way

The bill, if it becomes law, will place a comprehensive ban on sweepstakes casinos as of Oct. 1.

SB 1235 would target promotional casinos and drawings that mimic online casinos or sports betting. It would impose Class D felony punishments against anyone found guilty of operating such platforms, resulting in up to five years in prison and a $5,000 fine.

The bill also includes a variety of other changes to the state’s gaming system. It would enforce stricter regulations over lottery couriers, which are used to purchase lottery tickets online, and transparency rules for operators.

It would also enable legal sports betting on in-state colleges and universities during tournaments such as March Madness and conference championships.

Additionally, the bill would also allow Gov. Lamont to enter Connecticut into the Multi-State Internet Gaming Agreement, which provides cooperative regulation and a shared pool of online poker players among member states, which include Delaware, Nevada, New Jersey, Michigan, West Virginia, and Pennsylvania.

Several states move to ban sweepstakes casinos

Sweepstakes casinos are a type of dual-currency casinos that allow but do not require users to make purchases to play online games.

Customers use gold coins and sweeps coins to play games that can result in winnings of more coins, prizes such as gift cards, and real money.

The bill would limit promotional gaming opportunities to only provide non-cash prizes that can be used as discounts at retail grocery stores with five or more locations.

Connecticut’s move mirrors that of Louisiana, which this week also unanimously approved in both the House and Senate a bill that would make sweepstakes casinos completely illegal. That bill is awaiting Gov. Jeff Landy’s (R) signature.

Nevada also has a bill waiting on its Governor's desk.

Montana in May became the first state to institute an outright ban on sweepstakes casinos, a restriction that will also go into effect on Oct. 1. The state’s penalties were steeper than those included in SB 1235 and included a fine of up to $50,000 and a prison term of up to 10 years.

Nearby New York and New Jersey have also discussed ridding their markets of sweepstakes casinos.