Connecticut advances bill to ban online sweepstakes casinos and lottery couriers

Connecticut lawmakers are advancing legislation that would ban online sweepstakes casinos, lottery ticket resellers, and third-party courier services, in a bid to protect the state’s regulated gambling market from unlicensed competition.

Senate Bill 1235 (SB 1235), which passed the General Law Committee and Judiciary Committee unanimously, is now headed to the full Senate. The bill prohibits sweepstakes-style gaming platforms that allow users to play casino-style games with virtual currencies redeemable for cash prizes. It also bars individuals and businesses from operating ticket courier services or reselling lottery tickets.

“No person shall operate a ticket courier service in this state,” the bill states. It also prohibits sweepstakes or promotional drawings that “allow or facilitate participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed under chapter 229b.”

Violations would be classified as a Class D felony, carrying penalties of up to five years in prison and a $5,000 fine.

The legislation was recommended by the Connecticut Department of Consumer Protection. Regulators say the bill is necessary to protect consumers and maintain integrity in the state’s legal gaming ecosystem, which includes licensed online casinos operated by FanDuel and DraftKings in partnership with the Mohegan Sun and Foxwoods casinos.

In the first quarter of 2025, those platforms generated $375 million in gaming revenue. The state collected $60 million in tax revenue from online gambling in 2024.

Proponents of the bill argue that sweepstakes casinos do not offer the same safeguards as traditional legal casinos, pointing to consumer risks and lost tax revenue from unregulated operators.

Beyond enforcement measures, the bill also expands certain legal gaming provisions. It would allow betting on events featuring Connecticut college teams—provided the games do not take place in Connecticut—and formally authorize wagering on combat sports like MMA and boxing. It also opens the door for Connecticut to enter multistate gambling compacts, such as those enabling interstate online poker.

Connecticut is not alone in targeting unregulated sweepstakes casinos. States including New York, Maryland, Mississippi, and New Jersey have introduced or passed similar restrictions. In New York, operators like McLuck Casino, NoLimit Coins, and High 5 Casino recently exited the market after legislation threatening $100,000 fines and license revocation advanced in Albany.

According to the American Gaming Association, U.S. players wagered $109 billion through illegal or unregulated gambling platforms in 2024.

The Connecticut legislative session ends June 4. SB 1235 must pass both the Senate and House before that date to become law.