Connecticut Governor Ned Lamont signed SB 1235 into law on Wednesday, making it the second state to ban online sweepstakes casinos.
Key Insights:
- Connecticut officially bans sweepstakes gambling, effective Oct. 1.
- Betting on boxing, mixed martial arts, and some intercollegiate tournaments will soon be legal with some restrictions.
- Louisiana anti-sweeps bill is still awaiting Governor Landry’s signature, while New York’s bill heads to the Assembly.
Connecticut SB 1235 snuck in under the wire, winning unanimous House approval on June 3, the day before the end of the state’s 2025 legislative session. This week, Governor Lamont made it law.
The new law, effective Oct. 1, states that “No person shall conduct or promote a sweepstakes or a promotional drawing authorized by the provisions of section 53-278g that (1) is not related to the bona fide sale of goods, services or property, [or] (2) uses a simulated gambling device, or (3) allows or facilitates participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed under chapter 229b.”
With some restrictions, the new law will also allow betting on boxing and mixed martial arts. There is also a provision that allows betting on tournaments that include Connecticut intercollegiate teams, but it is limited.
A wager will be legal as long as there are “four or more intercollegiate teams that involves one or more Connecticut intercollegiate teams and the wager on the tournament is based on the outcome of all games within the tournament.”
Originally, the bill also included a ban of lottery ticket couriers and secondary lottery ticket sales. That provision, however, was removed during legislative review.
Two down. Who’s next?
Sweepstakes gambling sites allow customers to wager with free coins. Additional coins, however, can also be purchased with real money and/or cryptocurrency and exchanged for cash and prizes. These types of online casinos, which are unlicensed and unregulated, have recently come under fire from lawmakers and regulators.
Last month, Montana became the first state to ban sweeps. Meanwhile, there are a couple more states that have a chance to pass similar legislation this year. Louisiana SB 181 unanimously passed both legislative chambers this session. Governor Jeff Landry, however, hasn’t been in a rush to seal the deal.
Meanwhile, New York lawmakers are working feverishly to push their anti-sweeps bill through. On Wednesday, the New York Senate passed SB 5935, moving it on to the Assembly.
