A bill that has been working its way through the Connecticut legislature to ban sweepstakes casinos and third-party lottery couriers advanced one step further. Senate Bill 1235 (SB 1235), filed in February, passed the Legislative Commissioner's Office Monday and is currently headed for a vote in the full Senate.
Key Takeaways
- Connecticut bill proposes banning lottery couriers and sweepstakes casinos to protect licensed gambling operations
- The bill includes expanded betting on Connecticut college games, boxing, MMA, and peer-to-peer gaming
- The legislation allows the governor to join multistate gambling compacts, including online poker
The legislation has already received unanimous approval from two of its most significant committees. It passed the General Law Committee 22-0 in March and the Judiciary Committee 37-0 in April.
One central provision of the bill is its prohibition on lottery courier services. The bill stipulates, "No person shall operate a ticket courier service in this state."
Sweepstakes casinos are also a primary target of the new legislation. Sites that are likely to function outside state regulatory frameworks have become very popular with the application of dual-currency systems.
Typically, these sites allow gamblers to play using virtual funds that can be exchanged for real cash winnings, technically existing in a gray area of gambling regulations. SB 1235 would ban such sites outright, classifying those activities as illegal gambling businesses. Suggested punishments are up to five years' imprisonment and a $5,000 fine, making it a Class D felony to violate.
Connecticut aims to protect iGaming market
Connecticut legalized online casinos in 2021, and FanDuel and DraftKings were the only licensed operators under deals with the Mohegan Sun and Foxwoods casinos. In the first quarter of 2025 alone, these two sites made $375 million in revenue from casino games.
The state collected $60 million in tax revenue from internet betting in 2024. Legislators wish to protect this regulated and taxed business from unlicensed competition by acting against sweepstakes casinos.
SB 1235 also has a range of provisions that would allow additional legal gambling in the state. While legal Connecticut sports betting is prominent in the state, bets on games featuring Connecticut colleges is not permitted. The bill aims to propose an amendment that would welcome bets placed on games where Connecticut teams participate, but not if the game features colleges based in Connecticut.
Another expansion discussed in the bill includes combat sports. Although betting on MMA and boxing is already being conducted in the state, the new legislation seeks to enshrine rules regarding these sports legally. If the operators fail to comply with the newly written laws, the bill grants authority to prohibit such bets.
Another key provision of the bill is that which would allow Connecticut to enter into multi-jurisdictional gaming compacts. This would enable the state to join interstate gambling compacts involving other states, such as New Jersey, Michigan, and, most recently, Pennsylvania.
The Connecticut legislative session ends on June 4. SB 1235 must pass the Senate and the House of Representatives before that date to become law. If passed, it would significantly shift the state's approach to regulating legal and illegal gambling enterprises.
