Connecticut enacts ban on online sweepstakes casinos as states move to tighten regulations

Connecticut has become the second U.S. state to enact a ban on online sweepstakes casinos, as lawmakers across the country intensify efforts to regulate simulated gambling platforms operating outside traditional gaming frameworks.

Governor Ned Lamont has signed Senate Bill 1235 into law, officially prohibiting online sweepstakes casinos and establishing legal consequences for individuals or companies that operate or promote such platforms. Now designated as Public Act 25-112, the legislation received unanimous support in the Connecticut House with a 146-0 vote, following its prior approval in the Senate.

The act targets sweepstakes and promotional drawings not directly tied to the legitimate sale of goods, services, or property. It prohibits the use of simulated gambling devices in sweepstakes and restricts any sweepstakes linked to online casinos or sports betting. Under the new law, only retail grocery chains may promote sweepstakes games, and only if the promotion is tied to the sale of groceries and prizes are not redeemable for cash.

Violations of the statute will be treated as Class A misdemeanors, the same as professional gambling offenses, and are considered unfair or deceptive trade practices under state law.

Among the amendments made prior to passage was the removal of a proposed ban on lottery courier services, as well as the inclusion of language allowing online casinos in Connecticut to potentially enter compacts with other jurisdictions.

Connecticut's move follows a similar action taken in Montana last month. Governor Greg Gianforte signed Senate Bill 555 into law, amending the state’s existing gaming statutes to include a prohibition on sweepstakes casinos. 

That law, which takes effect on October 1, specifically bans any digital platform, whether a website, app, or service, that transmits or receives gambling-related information or facilitates wagers using any type of currency, including dual-currency models often used by sweepstakes operators. Montana’s statute carries a felony charge for violators, with potential prison sentences of up to 10 years.

Several other states are following suit. In New York, the Senate recently passed a measure by a 57-2 vote to ban online sweepstakes that mimic casino-style games. The bill, S5935, is now under review by the Assembly Ways and Means Committee.

Earlier this month, New York Attorney General Letitia James also announced that 26 online sweepstakes operators exited the state after receiving cease and desist orders. The group included platforms such as Fliff, High 5 Casino, and Sportzino.

The Social and Promotional Games Association, which represents some sweepstakes operators, released a statement expressing disappointment over the bill’s passage. 

“Unfortunately, Connecticut’s sweeping legislation fails to distinguish between lawful promotional sweepstakes and unregulated gambling, despite the absence of any meaningful evidence of consumer harm,” the group said. 

It added that instead of collaborating with operators who uphold consumer protections and responsible practices, Connecticut has adopted a stance that could stifle innovation and reduce consumer choice.