Connecticut Gov. Ned Lamont signed Senate Bill 1235 into law last week, making the Nutmeg State the second U.S. market to officially ban online sweepstakes casino operators.
Connecticut SB 1235 Bans Sweepstakes Casinos, Ticket Courier Services
Lawmakers in both Connecticut chambers unanimously passed SB 1235 by a 146-0 vote in the Senate and 36-0 in the House. The sweepstakes ban goes into effect Oct. 1.
Last month, Montana Gov. Greg Gianforte became the first governor to sign an anti-sweepstakes bill into law. Louisiana Gov. Jeff Landry also vetoed his legislature’s bill last week.
SB 1235 prohibits lottery ticket resales and ticket courier services, modifies the Commissioner of Consumer Protection’s disciplinary authority concerning gaming licensees, requires vendor and affiliate licensees to provide books and records, bans certain advertising, and authorizes certain bets on boxing and mixed martial arts.
SB 1235 Makes Illegal Gambling A Class D Felony
In addition, SB 1235 modifies provisions concerning wagers on sporting events involving Connecticut intercollegiate teams, and provide that “certain persons conducting sweepstakes or promotional drawings shall not allow or facilitate participation in certain real or simulated online casino gaming or sports wagering.”
However, promotions will be allowed if the prizes are non-cash and only serve as store discounts on grocery purchases at retailers with five or more locations.
Any resident or entity who engages in illegal gambling will be guilty of a Class D felony. Those crimes are punishable by up to five years in prison and a $5,000 fine.
DCP’s Gaming Division Suspended High 5 Games’ State License
More importantly, the Connecticut Department of Consumer Protection (DCP) endorsed SB 1235. DCP Commissioner Bryan Cafferelli said last month the measure would “benefit the department by improving our regulatory oversight of the gaming industry.”
Several sweepstakes giants, including VGW and Stake, have already withdrawn from Connecticut as state lawmakers and regulators continue their crack down on sweeps sites.
In March, Connecticut pressed more than 1,000 criminal charges against sweeps operator High 5 Games for offering illegal gambling to residents. The DCP’s Gaming Division also suspended the operator’s state license as a service provider of online slot content.
Sweepstakes Casinos Utilize A Dual-Currency System
Unlike traditional casinos, sweepstakes casinos are free-to-play online gaming platforms that operate under a legal framework in gray area.
Sweeps offer players a chance to participate in casino-style games and win prizes using a promotional sweepstakes model. Instead of real money, sweeps sites use a virtual currency, typically Gold Coins (GC) and Sweeps Coins (SC).
Although sweeps operators do not require players to gamble with real money, the online platforms allow players to redeem their virtual coins for real money or prizes.