Connecticut is moving aggressively to outlaw sweepstakes casinos and online gambling sites—the increasingly popular but legally gray online gaming sector.
It's just one of a string of states that recently forwarded bills to ban online sweepstakes casinos.
Key takeaways
- The Connecticut sweepstakes bill passed the House with a unanimous 36-0 vote.
- It's waiting for Gov. Ned Lamont to sign it into law.
- SB 1235 prohibits the promotion of sweepstakes casinos, as well as online casino gambling and sports betting.
On Tuesday, the state legislature finally voted to endorse Senate Bill 1235 (SB 1235), now pending Gov. Ned Lamont's signature. The bill, if enacted, outlaws operating or offering virtual casinos and virtual sweepstakes games modeled on real gambling activities.
SB 1235 targets websites that offer casino-style games as promotional sweepstakes. These operations usually let gamers use free or paid virtual chips to play slot machines or card games with a chance to win cash or rewards. Lawmakers argue such companies mimic normal gambling but sidestep regulations by not exchanging money directly.
Crimes against SB 1235 would be Class D felonies, punishable by five years' imprisonment and up to $5,000 fines.
Although the bill originally had provisions to prohibit online lottery ticket courier operations and secondary lottery ticket sales, both were removed during the legislative process. SB 1235, however, significantly enhances the state's power to enforce.
In a future-looking provision, the proposal also instructs Gov. Lamont to negotiate Connecticut's participation in the Multi-State Internet Gaming Agreement. That would create shared liquidity for online poker, linking player pools with other states to sustain the online poker market.
The law also allows wagering on in-state college teams when they play in tournament games—a change from previous prohibitions.
Louisiana follows Connecticut's lead
However, Connecticut's legislative action isn't a singular event, as Louisiana also passed its own bill—Senate Bill 181 (SB 181)—targeting similar online gaming scams. The Louisiana House of Representatives approved the law unanimously (99-0), and the Senate gave final assent on June 3. It's pending Gov. Jeff Landry's signature.
Louisiana's SB 181 specifically addresses games that incorporate two-currency systems, free and paid, typically employed in sweepstakes casinos. The websites use promotional language and game design that heavily simulates gambling. Instead of paying out winnings in cash, payouts are in a virtual form that users may redeem for tangible rewards.
Violation enactments would have severe penalties, including $100,000 fines and up to five years in prison.
Connecticut and Louisiana aren't alone in fighting sweepstakes casino regulatory gray areas. In May, Montana Gov. Greg Gianforte signed a bill into law that bans similar websites.
Nevada is also set to do so, and the state legislature is considering a proposal waiting for Gov. Joe Lombardo's approval. New York, New Jersey, and Ohio are debating similar legislation.
