Proposals that would ban sweepstakes casinos have advanced through the legislatures in Connecticut and New Jersey this week.
SB1235 in CT has nearly completed its path through the first chamber, having been tabled for the Senate calendar, meaning it’s ready for a floor vote. It’s seen solid support so far, and if it were to pass the Senate, we expect it’d proceed to the House of Representatives.
As one of just seven U.S. states that permit iGaming, Connecticut lawmakers may be especially motivated to draw a firm line – one that specifically excludes sweepstakes casinos.
SB1235 looks to ban any unlicensed company that “facilitates participation in any real or simulated online casino gaming or sports wagering”, designating this as a felony. Just over half of all sweepstakes operators still operate in the Constitution State, so the bill would create a sizeable exodus if passed.
In fact, SB1235 is a relatively wide-ranging proposal, including wording on banning lottery ticket couriers, allowing the state to enter into gaming compacts with other states, and clarifications around gambling advertising, and more.
The Connecticut legislative session for this year is scheduled to adjourn on June 4th, so lawmakers have until that date to get the bill on the governor’s desk for a signature. We’ve already seen some anti-sweeps bills fail to pass before deadlines in Maryland and Florida, but you can stay tuned to SweepsKings for all the relevant updates.
A Similar Story in New Jersey
A5447 in the New Jersey Assembly finally made some progress too, passing through the Tourism, Gaming, and the Arts Committee this week. This was after being originally introduced almost two months ago.
Though it remains in committee, New Jersey’s year-round legislative session allows more time for debate and development and doesn’t create so much of a rush to push bills through. Also, A5447 already has a counterpart in the State Senate in the form of S4282.
Like Connecticut, the Garden State permits iGaming within its borders, but if these bills pass, sweepstakes casinos in NJ would be “expressly prohibited”. Both NJ bills define the sweeps format as one where:
“something of value, such as a prize or prize equivalent, is awarded, either directly or indirectly through means such as a dual-currency system of payment that allows a participant to exchange the currency for a prize or prize equivalent.”
A5447 and S4282 are detailed in their definitions, and the above wording would likely apply to all sweepstakes operators, including big brands like WOW Vegas, Pulsz, and Chumba. Some big platforms, like Stake.us, are already out of NJ.
Like Connecticut’s proposal, the two bills reference other areas related to gambling in the state, not only sweepstakes. Then, when it comes to punishments for illegal enterprises, the NJ bills authorize the state Division of Consumer Affairs and Division of Gaming Enforcement to hand out penalties “of $100,000 for the first offense and $250,000 for every subsequent offense.” Provisions are also made to allow illegal profits to be recovered.
Testimony in favor came from B. Stephan Finkel, the director of legislative affairs for the New Jersey Attorney General’s Office, as well as from Eric Scheffler on behalf of the Sports Betting Alliance. The SBA is a trade association representing the interests of traditional gambling and member brands such as BetMGM, DraftKings, FanDuel, and Fanatics Sportsbook.
CT and NJ Look to Follow Montana
Connecticut is certainly closer to getting its bill over the finish line, but New Jersey has the luxury of a year-round legislative session.
We must now wait to see whether these two states can replicate Montana’s feat of passing an anti-sweeps bill through both houses of the legislature – all that remains there is the governor’s signature, and MT will be the first state to officially ban sweepstakes this year.
Originally published: May 9th 2025
Author: Joseph Allen
Updated:
