Summary
- Connecticut has strengthened its opposition to sweepstakes social casinos with the approval of new legislation.
- Governor Ned Lamont has signed Senate Bill 1235 into law, prohibiting sweepstakes gaming as of October 1.
- The decision was swiftly and strongly criticized by trade groups, particularly the SPGA, which condemned the developments.
Connecticut has recently become the second state in the United States to ban sweepstakes social casinos and sweepstakes gambling. This decision comes amidst an unprecedented wave of regulatory crackdowns on the sector across the nation.
Sweepstakes deemed illegal by new law in Connecticut
Governor Ned Lamont signed Senate Bill 1235 into law on June 3. This bill swiftly made it through his office with full backing from the House of Representatives. The new law states: No person shall conduct or promote a sweepstakes or promotional drawing authorized by section 53-278g if it (1) is not connected to the genuine sale of goods, services, or property, (2) uses a simulated gambling device, or (3) permits or facilitates participation in any real or simulated online casino gaming or sports betting, unless that person is licensed under chapter 229b. This decision prompted an immediate reaction from the Social and Promotional Games Association. Members such as Blazesoft, High 5 Entertainment, and Gold Coin Group, along with the trade group, criticized the new law. They argued that sweepstakes-based gaming platforms have been operating locally for a long time. In Connecticut, unfortunately, the new legislation fails to differentiate between legal promotional sweepstakes and unregulated gambling, despite the lack of substantial evidence of consumer harm, stated the SPGA.
Trade group warns of unintended consequences leading to loss of innovation
The SPGA has criticized lawmakers for neglecting to engage with operators who prioritize consumer protection, compliance, and responsible gambling. They warned that the legislators' current approach could stifle innovation, restrict consumer choices, and drive compliant businesses out of the state. This situation has escalated following New York's Attorney General sending 26 cease-and-desist letters to sweepstakes and social casinos, labeling them as illegal. In Maine, the gambling regulator has also advised residents to avoid engaging with sweepstakes gaming websites, stating that these platforms are not regulated under state law. The only area where sweepstakes operators found some relief was in Louisiana, where Governor Jeff Landry vetoed Senate Bill 181. This bill aimed to impose stricter regulations on sweepstakes casinos. However, Landry's decision was not due to a disagreement with legislators but because he believed the existing laws were sufficient in classifying sweepstakes casinos as illegal operations.
