Connecticut Bill to Ban Online Sweepstakes Casinos Heads to Senate

Gaming regulators in Connecticut continue to gain momentum on a bill that would ban online sweepstakes casinos in the state.

Senate Bill 1235, which passed the state’s Judiciary Committee by a 37-0 vote last month, was reported favorably out of the Legislative Commissioners’ Office on Monday and now heads to the Senate. 

The Joint Committee on General Law unanimously approved the bill, 22-0.  

SB 1235 prohibits online sweepstakes casinos, lottery ticket resales, and ticket courier services.

The proposed legislation, recommended by the Connecticut Department of Consumer Protection (CDCP), states that anyone caught operating an illegal gambling business is subject to a Class D felony. Those crimes are punishable by up to five years in prison and a $5,000 fine.   

Connecticut Regulators Seek Sweepstakes Ban to Safeguard Citizens

SB 1235 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, (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.”

Sweepstakes gaming allows customers to use free virtual currencies — usually coins or tokens — to play online casino games. Customers can then purchase more credits and exchange them for cash and prizes.

While such platforms are widely available, they tend to operate in a legal gray area. Because they are not regulated, sweepstakes casinos do not offer the same safeguards as traditional legal casinos.

States like Connecticut and New Jersey, which offer legal iGaming, have expressed concern about sweepstakes casinos taking in money that would otherwise be going to taxed and regulated operators.

States Mounting Push Against Sweepstakes Casinos

Several sweepstakes casino operators—including High 5 Casino, McLuck Casino, and NoLimit Coins—have recently left New York in response to a bill seeking to ban them.

SB 5935 threatens fines up to $100,000 and loss of licensing for anyone found guilty of supporting or facilitating online sweepstakes gaming in the Empire State.   

States that have pushed similar bans include Maryland, Mississippi, and New Jersey.

According to the American Gaming Association (AGA), $109 billion was bet on illegal and unregulated operators last year.

Courier Services Also Under Fire

The bill also calls for a restriction on courier services — third-party vendors that purchase lottery tickets on behalf of their patrons.  

Last week, the Texas Lottery Commission voted unanimously to ban them following two controversial lottery jackpots.  

The post Connecticut Bill to Ban Online Sweepstakes Casinos Heads to Senate appeared first on CasinoBeats.

 Gaming regulators in Connecticut continue to gain momentum on a bill that would ban online sweepstakes casinos in the state. Senate Bill 1235, which passed the state’s Judiciary Committee by a 37-0 vote last month, was reported favorably out of the Legislative Commissioners’ Office on Monday and now heads to the Senate.  The Joint Committee
The post Connecticut Bill to Ban Online Sweepstakes Casinos Heads to Senate appeared first on CasinoBeats.