Connecticut’s SB 1235 Targets Sweepstakes Casinos with Felony Penalties and Lottery Courier Ban

A Crackdown on Unregulated Gaming

Connecticut’s Senate Bill 1235, filed by the General Law Committee on February 5, 2025, is charging toward a full Senate vote after unanimous committee wins 22-0 in the General Law Committee in March and 37-0 in the Judiciary Committee in April.

Cleared by the Legislative Commissioners’ Office on May 6, it’s now on the Senate calendar, with the session ending June 4. The bill bans sweepstakes and promotional drawings that use simulated gambling devices or enable real or fake online casino games or sports betting, except for grocery chains offering non-cash prizes tied to sales.

It also slams the door on lottery courier services like Jackpocket, defining them as for-profit entities buying tickets for profit. “No person shall operate a ticket courier service in this state,” the bill states. Violators face Class D felony charges, up to five years in prison, and $5,000 fines.

Broader Changes and Challenges

SB 1235 is part of Connecticut’s fight to squash unregulated gambling, protecting its taxed, legal iGaming market, which hit a $31.9 million revenue record in October 2024.

Sweepstakes casinos, using dual-currency systems like Sweeps Coins, skirt regulations by offering free play with cash-redeemable prizes, siphoning revenue from state-approved operators. Last year, the Department of Consumer Protection (DCP) sent cease-and-desist letters to Virtual Gaming Worlds and High 5 Games, with 911 High 5 players losing $937,938, including 108 on the state’s exclusion list.

Lottery couriers, buying tickets for clients, also dodge oversight, prompting the ban. The bill allows seizure of simulated gambling devices and labels violations as unfair trade practices. “The bill reflects Connecticut’s commitment to regulating online gambling,” said analyst Wilna van Wyk. Grocery chains get a pass for promotional sweepstakes tied to food sales, but only if prizes are discounts, not cash.

Beyond bans, SB 1235 greenlights bets on boxing, MMA, and Connecticut college teams, pending tribal compact updates with the Mashantucket Pequot and Mohegan tribes, needing federal approval. It also lets the governor sign multi-state deals for peer-to-peer games like poker, effective July 1, 2025, potentially joining the Multi-State Internet Gaming Agreement.

The DCP gets beefed-up oversight, with powers to suspend licenses, fine up to $2,500, and demand records. New ad rules ban targeting minors or misleading claims. B

ut the bill’s tough stance could spark pushback. Sweepstakes operators argue they’re legal entertainment, not gambling. “This bill unjustly targets sweepstakes,” said the Social & Promotional Games Association.