Connecticut Gov. Signs Sweepstakes Casino Ban, NY Bill Makes Progress

Two northeastern states – New York and Connecticut — took recent action against online sweepstakes casinos.

Connecticut Gov. Ned Lamont (D) signed Senate Bill 1235 into effect on Wednesday, making it the second state behind Montana to ban the form of online gaming. Meanwhile, New York on Wednesday advanced Senate Bill 5935 to the state Assembly for further discussion and adjustments.

SB 5935 would outlaw sweepstakes casinos and make it illegal for affiliates, such as advertising companies and third-party bank processors, to support their operations.

Connecticut takes a stand

Connecticut’s SB 1235 received unanimous approval in the House on June 3, the day before the end of the legislative session. It was then sent to the Governor's desk, where he could sign it into law, ignore it and let it become law after 15 days untouched, or submit a veto.

Lamont opted to agree to the ban, which states that as of Oct. 1 “No person shall conduct or promote a sweepstakes or a promotional drawing” without licensed approval.

The bill also contains adjustments to the state’s sports betting landscape. 

It will allow betting on boxing and mixed martial arts, both of which were previously prohibited. It also opens sportsbooks to offer odds for in-state schools and universities in tournaments with at least four collegiate teams, although bettors may only wager on which team will win the tournament.

The bill previously contained language that would’ve banned lottery couriers and secondary lottery ticket sales. Those details were removed during the legislative session and from the bill that eventually made it to the Governor’s desk.

New York’s gaming market continues to evolve  

While Connecticut officially introduced its ban, New York is gaining momentum as it looks to do the same.

SB 5935 would outlaw “online sweepstakes games and revenue from illegal markets,” thereby eliminating them and supporting companies from the state’s lucrative gaming market.

This development comes after New York Attorney General Letitia James announced last week that her office had sent cease-and-desist letters to 26 operators.

“There are operators conducting business inside our State that are running afoul of New York’s penal restrictions on unlawful gambling,” the New York State Gaming Commission said on X (formerly Twitter). “Staff have made several referrals to law enforcement and is assisting in case development.”

The bill would carry a fine of $10,000-100,000 depending on the incident.

New York’s market clean-up is important since it is only two weeks away from its June 27 deadline for retail casino operator’s license applications. The drawn-out process has been criticized but is getting closer to deciding which three operators will receive gaming licenses at the end of the year.

Louisiana this week had a bill to ban sweepstakes casinos on its Governor’s desk, although he vetoed it and called it “unnecessary.”