Connecticut is the latest state to officially ban online sweepstakes casinos.
Gov. Ned Lamont signed Senate Bill 1235 into law, making online sweepstakes casinos illegal in Connecticut and providing legal repercussions for their operation or promotion. SB 1235, now known as Public Act 25-112, was signed by Lamont after the House passed the piece of legislation following a 146-0 vote. The bill, sponsored by the House General Law Committee, gained approval in the House after passing in the Senate with amendments.
The amendments included the removal of a ban on lottery couriers and a provision allowing online casinos in the state to compact with other markets throughout the country.
Public Act 25-112 bans individuals and companies from offering or promoting a sweepstakes or promotional drawing that is not “not related to the bona fide sale of goods, services or property.” The law criminalizes the offering or promotion of sweepstakes using simulated gambling devices and sweepstakes tied to online casinos and sports wagering.
Under Public Act 25-112, sweepstakes games are only permissible in the state if offered or promoted by a retail grocery chain with the games related to the sale of groceries.
The contest cannot offer a prize that is redeemable for cash.
Any person who violates Public Act 25-112’s provisions regarding sweepstakes is subject to the state’s penalty for professional gambling with violations deemed as unfair or deceptive trade practices. Connecticut considers professional gambling a Class A misdemeanor.
Two US markets sign sweeps ban into law
Connecticut is the second U.S. gaming market to enact a ban on sweepstakes casinos.
Last month, Senate Bill 555 was signed by Montana Gov. Greg Gianforte placing a ban on online sweepstakes casinos in the state. Gianforte signed the piece of legislation that amends the state’s existing gaming laws to ban the operation of online casinos.
The ban “includes but is not limited to any platform, website, or application that knowingly transmits or receives gambling information, allows consumers to place a bet or wager using any form of currency.” The forms of currency apply to dual currencies offered by sweepstakes operators. The bill, introduced by Sen. Vince Ricci, goes into effect on Oct. 1.
An individual who knowingly violates Montana’s new rule regarding online casinos and sweepstakes will be charged with a felony and face up to 10 years in prison.
Sweepstakes legislation being considered nationwide
Connecticut and Montana outlawed sweepstakes as other states also consider a ban.
On Wednesday, the New York Senate approved a measure to ban online sweepstakes contests that simulate casino-style games following a 57-2 vote. The measure, S5935, has been referred to the Assembly Ways and Means Committee for further consideration.
Last week, New York Attorney General Letitia James announced that 26 online sweepstakes casino operators left the state after receiving cease and desist orders.
The group of sweepstakes casino operators included Fliff, High 5 Casino and Sportzino.
Lawmakers and regulators in Louisiana, Maine, Ohio and New Jersey are also considering a sweepstakes ban. Earlier this week, the Maine Gambling Control Unit sent a public statement to residents warning them to avoid online sweepstakes casinos.
