Connecticut has officially become the second U.S. state to outlaw online sweepstakes casinos, with Governor Ned Lamont signing Senate Bill 1235 into law. Now known as Public Act 25-112, the new legislation will prohibit the operation and promotion of unlicensed sweepstakes-style gaming platforms starting October 1, 2025.
What Are Sweepstakes Casinos?
Sweepstakes casinos are digital platforms offering casino-like games such as poker, blackjack, and slots. Unlike traditional gambling websites, they operate through a “sweepstakes” model. Players use virtual currency, often earned or gifted, to engage in games where winnings can sometimes be exchanged for real money. This structure has historically allowed such platforms to bypass conventional gambling laws in many jurisdictions.
These platforms gained traction during the pandemic, drawing players with their no-cost entry and real cash-out potential. However, their legality has increasingly come under scrutiny, prompting states to act.
Provisions and Impact of Public Act 25-112
Connecticut’s new law enforces a sweeping ban on any sweepstakes games not directly tied to legitimate commercial activity, like the sale of goods or services. According to the bill, any individual or business caught promoting or operating such games without a license may face a Class D felony, punishable by up to five years in prison and $5,000 in fines.
The legislation also targets simulated gambling devices and restricts promotional games unless they are part of grocery retail promotions. Legal sweepstakes must not offer cash-redeemable prizes, with violations also qualifying as unfair or deceptive trade practices.
Lawmakers, Regulators, and Industry Weigh In
SB 1235 received unanimous backing—146-0 in the House and 36-0 in the Senate—underscoring bipartisan support. Governor Lamont’s endorsement further solidifies the state’s effort to curb unregulated gambling.
Bryan Cafferelli, Commissioner of the Department of Consumer Protection (DCP), applauded the move, stating it would “improve our regulatory oversight” of Connecticut’s gaming market.
However, industry opposition was vocal. Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance (SGLA), expressed disappointment over the bill’s passage:
“It is disappointing that Connecticut residents have lost access to popular, free-to-play online games enjoyed by millions nationwide.” He criticized the legislation as being rushed and lacking stakeholder dialogue, arguing that it could stifle innovation and give rise to black-market alternatives.
Broader National Trend Toward Regulation
Connecticut follows Montana, which passed a similar ban in May through Senate Bill 555, making it the first state to outlaw these platforms. Other states are following suit:
- New York has already issued cease-and-desist orders to 26 operators and is reviewing a bill to ban simulated gambling contests.
- New Jersey is actively considering regulatory measures.
- Idaho and Washington already have strict rules making sweepstakes casinos effectively illegal.
- Louisiana Governor Jeff Landry, however, vetoed comparable legislation, calling it unnecessary.
While legislative outcomes vary, the overarching trend is clear: more states are examining the legality and consumer risks of sweepstakes casinos. The Social and Promotional Games Association (SPGA) voiced concern over these moves, asserting that they confuse compliant promotions with illicit gambling and penalize operators that follow responsible gaming standards.
Source:
“Connecticut becomes second US state to ban sweepstakes casinos”, sigma.world, Jun 16, 2025
The post Connecticut Becomes Second State to Ban Sweepstakes Casinos first appeared on RealMoneyAction.com.