Connecticut Senate Moves to Ban Online Sweepstakes Casinos with SB 1235
Connecticut's Senate has approved a new piece of legislation aimed at prohibiting online sweepstakes casinos, marking a significant step in tightening the state’s gambling regulations. Senate Bill 1235, which passed with unanimous support in a 36-0 vote, is now awaiting final approval from Governor Ned Lamont, who is expected to review the bill soon.
Introduced by the General Law Committee, SB 1235 seeks to block any sweepstakes promotions not directly tied to the sale of tangible goods, services, or property. The bill specifically targets promotional drawings and simulated gambling activities commonly associated with unregulated online casinos and sports betting platforms. Although the original version of the bill included provisions to ban online lottery courier services, this part was removed through an amendment on the Senate floor.
The bill has already passed through the House of Representatives, and while the governor could veto it, such a move is unlikely given the overwhelming bipartisan support it has received in the legislature.
Aiming to Safeguard the State’s Legal Gaming Framework
A key driver behind SB 1235 is to protect the established legal internet gaming structure in Connecticut, which includes partnerships with Mohegan Sun and Foxwoods Resort Casino. Lawmakers have expressed concerns that illegal sweepstakes casinos undermine both the state's regulated gaming market and its tax revenue. By eliminating these unlicensed operations, the state aims to reinforce its gaming industry’s integrity and safeguard jobs tied to legal gaming services.
The legislation also introduces tougher penalties for individuals involved in illegal gambling activities. Offenders will face Class D felony charges, with potential prison sentences of up to five years and fines reaching $5,000.
Potential for Growth in Regulated Gaming
Beyond its focus on enforcement, SB 1235 also opens up opportunities for Connecticut to broaden its involvement in the regulated gaming sector. If the bill becomes law, it will authorize the governor to negotiate interstate agreements through the Multi-State Internet Gaming Agreement (MSIGA), allowing Connecticut to potentially join existing compacts with states like Michigan, New Jersey, and Pennsylvania.
This would be especially beneficial for Connecticut's online poker market, which currently struggles due to a limited player pool. Engaging in multi-state agreements would provide Connecticut-based operators with access to a larger market, encouraging more poker operators to enter the state.
Additionally, the bill looks to expand the state’s legal sports betting market. It would permit wagering on in-state college teams during tournaments and open the door for bets on combat sports, such as boxing and mixed martial arts. These forms of betting were previously prohibited under state law but would now become legal with the passage of SB 1235.
Enhanced Regulatory Oversight and Advertising Restrictions
SB 1235 strengthens the enforcement powers of the Department of Consumer Protection, giving the agency more authority to regulate and oversee gambling activities within the state. It also introduces restrictions on gambling advertisements, a response to growing concerns over the potential harms of misleading or deceptive marketing. The bill prohibits the targeting of vulnerable populations, such as minors, and bans advertising practices that could mislead consumers.
Part of a Broader National Effort
Connecticut’s move to outlaw online sweepstakes casinos aligns with similar actions taking place across the U.S. Recently, Montana became the first state to formally ban these types of casinos through state legislation. Louisiana is also pushing forward with similar efforts, with a bill that has passed the Senate and is now headed to the House for consideration.
SB 1235 is part of Connecticut’s ongoing efforts to refine its gambling laws by addressing illegal gambling platforms while also fostering growth within the regulated market. As other states adopt similar measures, Connecticut’s new law stands as a strong example of how states are working to protect consumers and promote safer, more regulated gambling environments.
Source: “Connecticut Senate Passes Ban on Online Sweepstakes Casinos,” LCB.org, June 9, 2025