Connecticut’s Sweepstakes Ban Awaits Governor’s Signature

A Unanimous Push to Ban Sweepstakes

On June 3, 2025, Connecticut’s House of Representatives voted 146-0 to pass Senate Bill 1235 (SB 1235), following the Senate’s unanimous 36-0 approval on May 22.

The bill, backed by the General Law Committee, now sits with Gov. Ned Lamont, who has 15 days to sign it or let it become law without a veto. SB 1235 bans operating or promoting sweepstakes casinos, targeting platforms that mimic online gambling with virtual coins redeemable for cash.

Lawmakers say these sites skirt regulations, threatening Connecticut’s licensed gaming industry, which includes FanDuel and DraftKings tied to Mohegan Sun and Foxwoods.

The bill outlaws sweepstakes not tied to “bona fide” sales of goods or services, especially those using simulated gambling devices or linked to online casino games and sports betting. Violations are Class D felonies, carrying up to five years in prison and $5,000 fines, though some sources suggest Class A misdemeanor penalties for lesser offenses.

Originally, SB 1235 aimed to ban lottery courier services and allow multi-state gaming compacts, but those provisions were cut. It also permits betting on in-state college teams during tournaments and authorizes multi-jurisdictional poker agreements, boosting regulated gaming.

Why Connecticut’s Cracking Down

Sweepstakes casinos operate in a legal gray area, offering free or paid virtual chips for slot or card games with cash prize options. Lawmakers argue this mimics gambling without oversight, undercutting Connecticut’s regulated online casinos, which generated $375 million in Q1 2025 and $60 million in 2024 taxes.

The Department of Consumer Protection, which endorsed SB 1235, previously issued a cease-and-desist to VGW, a major sweepstakes operator, forcing it to exit Connecticut in 2024.

Connecticut isn’t alone. Montana banned sweepstakes casinos via Senate Bill 555, effective October 1, 2025. Louisiana’s Senate Bill 181, passed 99-0, awaits Gov. Jeff Landry’s signature, with penalties up to $100,000 and five years in prison. Nevada’s Senate Bill 256 is also governor-bound.

New York, New Jersey, and Ohio are debating similar bans, while efforts in Illinois, Arkansas, Maryland, and Florida fizzled. The Social and Promotional Games Association slammed Louisiana’s bill, defending sweepstakes as legal entertainment, but Connecticut’s unanimous votes suggest little sympathy.

If signed, SB 1235 takes effect October 1, 2025, likely ending sweepstakes platforms in Connecticut. Lamont, who hasn’t signaled his intent, could veto it, but the bill’s bipartisan support makes that unlikely.