Lawmakers in Connecticut are probably the second most antagonistic lot insofar as the online sweepstakes casino sector is concerned.
After Montana became the first state to outlaw the activity, Connecticut is coming a close second (or third if you consider recent developments in Louisiana) with Senate Bill 1235 garnering the support of lawmakers in the House of Representatives, which voted on Tuesday in an overwhelming 146-0 vote, having previously cleared the Senate with a 36-0 vote.
Connecticut poised to kill sweepstakes casinos
There are a few issues that bring bipartisan support of this sort, and online sweepstakes casinos have turned out to be one of those. All that remains for Connecticut to become the second state in the country that specifically outlaws sweepstakes is for Gov. Ned Lamont to sign the bill into law and then for a ban to kick in on October 1, 2025, as outlined in SB 1235.
The Social Gaming Leadership Alliance Executive Director and former Congressman, Jeff Duncan, has issued a statement criticizing the decision and discussing its implications. He called the decision disappointing and spoke about the unintended knock-on effects this law would have on consumers.
"It's unfortunate that this legislation was hastily passed based on incomplete information, with little attempt to engage with legitimate industry operators thatprioritize playerprotections. The result is a win for the black market, and other groups with vested interests that campaigned for this bill with falsehoods and misinformation."
Ultimately, said Duncan, this would lead to a loss of innovation, competition, and potential benefits for the state. The new law seeks to treat platforms that offer sweepstakes as a Class D Felony punishable by up to five years in prison, as well as a $5,000 fine.
The bill’s successful passage was partially because sweepstakes were put together with other changes to the lottery operations, and generally because the bill is riding a crest of discontent against the sweepstakes sector, which has been accused of simulating gambling but without necessarily being subject to the same strict oversight.
Bill passage is now one signature away from becoming law
The state used SB 1235 to pass tighter measures on lottery couriers, which have been a casus belli in Texas, where lawmakers have moved swiftly to dissolve the lottery regulator and transfer its powers to another state institution, although this has been delayed.
As Connecticut is all but certain to ban sweepstakes, pending the governor’s signature, other states are also trying to forge ahead with similar moves, including in Louisiana, New Jersey, and New York.
The sector has come under increased scrutiny with many companies, including VGW, choosing to clip their operations of sweepstakes preemptively in places such as New York, while keeping their non-redeemable currencies operational.
Louisiana is all but certain to outlaw sweepstakes as well
Not least, the state of Louisiana has also now passed a bill outlawing online sweepstakes casinos in both the House and Senate, and once again, without a single dissenting voice.
Louisiana's governor, Jeff Landry, may sign the bill into law even today, and a veto is highly unlikely given the strong support coming from lawmakers.
"It's unfortunate that this legislation was hastily passed based on incomplete information because the result is that residents lose access to safe, fair, and free-to-play entertainment enjoyed by millions of Americans while black market operators laugh all the way to the bank," Duncan added, commenting on the Louisiana developments.
