The Connecticut General Law Committee filed a 30-page raised bill (No. 1235) on Feb. 4 that would ban sweepstakes featuring “real or simulated online casino gaming or sports wagering.” The proposal has since been referred to the state’s Joint Committee on General Law.
Connecticut Raised Bill No. 1235 Would Make It A Class D Felony To Engage In Sweepstakes Gambling
Raised bill No. 1235 also makes it a Class D felony to engage in professional gambling, according to renowned sports betting and gaming lawyer Daniel Wallach. Class D felonies in the Constitution State are punishable by up to five years in prison and a $5,000 fine.
The bill’s Statement of Purpose reads:
“To (1) prohibit lottery ticket resales and ticket courier services, (2) modify the Commissioner of Consumer Protection’s disciplinary authority concerning certain gaming licensees, (3) require vendor and affiliate licensees to provide books and records, (4) define and redefine certain terms concerning gaming, (5) modify provisions concerning wagers on sporting events involving Connecticut intercollegiate teams, (6) restrict who may review certain criminal history records checks, (7) prohibit certain advertising, (8) authorize certain bets and wagers on boxing and mixed martial arts, (9) 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, (10) provide that any person who engages in professional gambling shall be guilty of a class D felony, and (11) repeal a provision authorizing the commissioner to appoint a director to perform delegated functions.”
DCP Ordered VGW Holdings To Stop Offering Its Services In The State
In October 2024, the Connecticut Department of Consumer Protection (DCP) ordered Australian-based Virtual Gaming Worlds (VGW) Holdings to prohibit residents from participating in the platform’s games within the state. VGW is currently the largest sweepstakes-based casino active in the U.S.
Sweepstakes casinos are legal in 47 states and allow players to engage in online casino games for free. Players receive free credits, usually coins or tokens, to place sports bets or play casino games like slots and table games.
Customers can then purchase more credits and turn those into virtual currency to receive additional free credits that can be redeemed for cash and prizes. The majority of states allow sweepstakes casinos.
However, gaming regulators in Connecticut, Delaware, and Michigan have sent cease-and-desist letters to several sweepstakes operators. Class-action lawsuits have also been filed against sweepstakes companies in Florida and Mississippi.
In addition, Maryland lawmakers filed SB860 in the state legislature to prohibit online sweepstakes casinos. The bill proposes license denial and/or revocation of any person or entity that supports or promotes the operation of online sweepstakes games.