New Draft Legislation Targets Sweepstakes Casinos in Connecticut

Opposition to the sweepstakes industry and prediction markets has been growing in Connecticut. Recent events suggest there is political momentum to eliminate at least the sweepstakes sector.

A new Senate Bill, SB 1235, was unanimously approved by the Senate. This bill aims to ban both online sweepstakes casinos and third-party lottery courier services. With less than two days remaining before the legislative session ends on June 4, the bill is now set to be considered by the House of Representatives. Despite its 36-0 approval in the Senate, the House has shown little interest so far. The bill explicitly targets the sweepstakes industry, proposing to outlaw the use of simulated gambling devices for promotional sweepstakes or drawings. However, Connecticut’s chances of passing the bill appear slim. While Montana succeeded in restricting sweepstakes, no other state has managed to pass similar legislation. As the Wednesday deadline approaches, it seems unlikely that Connecticut will make a last-minute push, especially since the bill still requires committee review and a floor vote in the House.

While aggressively pursuing sweepstakes and third-party lotteries, SB 1235 takes a more measured approach to online gambling. The bill proposes updates to the state's gambling regulations, enabling potential membership in the Multi-State Internet Gaming Agreement (MSIGA). This agreement permits states with legalized online poker to combine their player bases and prize pools, resulting in more attractive options for local players. However, SB 1235 might be pushing its limits by also suggesting the expansion of current sportsbook license holders and the addition of more regulated operators to boost market competitiveness.