A bill that would ban online sweepstakes casinos in Connecticut is gaining momentum in the Senate.
Last week, Senate Bill 1235 passed the Senate Committee on Judiciary by a unanimous 37-0 margin. In March, it passed the Joint Committee on General Law by another unanimous vote — 22-0.
Now, it has already been assigned for review by the Office of Legislative Research and Office of Fiscal Analysis on Monday, May 5.
In other related news, a New York committee approved one of that state’s two sweeps ban bills and Montana has formally passed legislation that effectively outlaws gaming using currency like Sweeps Coins or cryptocurrency.
What does the bill say?
SB1235 reads that “no person shall conduct or promote a sweepstakes or a promotional drawing authorized by the provisions of section 53-278g” and which “is not related to the bona fide sale of goods, services or property, uses a simulated gambling device, or allows or facilitates participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed under chapter 229b.”
The success of SB 1235 has been buoyed so far by the backing of the state’s Department of Consumer Protection. The bill stipulates that punitive actions for anyone offering sweeps gaming can include the charge of anything from a class A misdemeanor to a class D felony. A summary of the bill describes the measure as “an act concerning the Department of Consumer Protection’s recommendations regarding lottery and gaming regulation.”
This momentum gives reason to believe SB1235 has a good chance at success.
The bill also bans lottery couriers, such as Jackpocket and Jackpot.com.
Lottery courier services have been a hot topic in gaming, as states respond to expansions in products that aim to make it easier for consumers to get tickets. A courier purchases tickets on a customer’s behalf, after that customer orders that purchase online or via an app. In many states the laws don’t expressly address such courier buying and selling, but Connecticut is trying to explicitly ban such activity.
The sections of the bill that pertain to sweepstakes casinos go into effect on October 1, 2025. The measures prohibiting lottery courier services take effect July 1, 2025.
It boils down to Sweeps Coins
At the root of state’s issues with sweepstakes casinos is the use of Sweeps Coins, a virtual currency that can be redeemed for real cash. But because Sweeps Coins technically aren’t real currency, sweepstakes casinos can exist outside the regulations of most states gaming laws. Sweeps sites do also offer more of a social casino option with Gold Coins, which have no redeemable real-world value.
Earlier this year, High 5 Casino was suspended and threatened with criminal charges by Connecticut for offering its online gaming product in the state.
