Connecticut’s General Law Committee has just approved a Senate bill that would ban sweepstakes casinos – it passed with a unanimous vote of 22-0.
Filed in February 2025, SB1235 is a wide-ranging proposal that covers various issues related to lottery and gaming regulation in the state. The many provisions it seeks to introduce by updating existing law include:
- Prohibiting lottery ticket resales
- Requiring lottery vendors and affiliate licensees to provide books and records
- Prohibiting certain types of gaming advertising
However, sweepstakes players in the Constitution State will want to pay attention to one section in particular. Section 11 draws a clear distinction against sweeps sites that use a dual currency format, like McLuck, RealPrize, and Jackpota. Yes, if passed, beginning on October 1st this year, the bill would outlaw any unlicensed company that “facilitates participation in any real or simulated online casino gaming or sports wagering”.
It would also change the severity of such a crime from a misdemeanor to a felony, creating the possibility for heftier punishments for operators (bigger fines and longer jail sentences).
Interestingly, the bill states that retail grocery chains will still be allowed to operate the below:
“A sweepstakes that uses a simulated gambling device, provided such sweepstakes is related to the sale of groceries, the prize is not redeemed or redeemable for cash and the prize is only used as a discount to reduce the price of items purchased from such retail grocery chain.”
Connecticut is Already a Legal iGaming State
Connecticut is one of seven US states that permit online casinos, but only two operators are licensed to offer this service currently: Mohegan Sun Online Casino (FanDuel partner) and DraftKings (Foxwoods partner).
Because Connecticut already has strict gambling laws in place, many sweepstakes casinos, including bigger names like Stake.us and WOW Vegas, choose not to offer services within its borders.
It’s also worth mentioning that Chumba Casino operator, VGW, is engaged in a private lawsuit in Connecticut as we speak. In fact, VGW no longer operates in the state after receiving a cease-and-desist letter from the Connecticut Department of Public Safety.
Smaller operators have, up till now, taken a chance in the state, but if SB1235 passes into law, we are very likely to see an exodus before the end of the year.
Connecticut legalized online casinos, poker, and sports betting in 2021, and the market still appears to be growing. In October last year, a new revenue record was set, with the two operators bringing in a combined $31.9 million over the month. This, of course, provides an excellent revenue stream for the state via taxation.
Legal iGaming states generally seek to draw very clear lines between regulated and non-regulated casinos, and SB1235 would help move things beyond a shadow of a doubt.
Next Steps for Connecticut’s SB1235
This bill will continue its passage through the Senate, and we’d expect a counterpart proposal to be introduced in the House of Representatives shortly. If both chambers review and approve the bills, they will move forward for the governor’s signature.
Connecticut is one of a growing number of US states to be pushing ahead with stricter legislation that closes up the loopholes sweepstakes casinos have utilized up till now. Others include Arkansas, New York, New Jersey, Maryland, Mississippi, Nevada, Louisiana, and Florida.
It’s a movement that provides far greater legal clarity, but unfortunately removes options for US players who enjoy playing social casino games for cash prizes.
Author: Joseph Allen
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