Lawmakers in Connecticut Propose Legislation to Regulate Sweepstakes Gambling Facilities
Connecticut has taken a significant step towards regulating online gambling activities by signing into law Senate Bill 1235 (SB 1235), which bans online sweepstakes casinos. Governor Ned Lamont approved the bill in June 2025, making Connecticut the second state, after Montana, to outlaw such casinos.
The new legislation aims to strengthen oversight over unregulated gambling activities, specifically targeting online sweepstakes casino operations. The bill prohibits anyone not licensed to operate online casino gaming or sports wagering from conducting or promoting a sweepstakes or promotional drawing that allows or facilitates participation in real or simulated online casino gaming or sports wagering.
The Department of Consumer Protection in Connecticut, which oversees gambling regulation, supported Senate Bill 1235. If passed, the bill will expand the department's powers to investigate and enforce potential regulatory breaches.
Connecticut officials have expressed concern about online platforms offering gambling-like experiences while skirting regulations. Infractions under the bill are elevated to Class D felonies, punishable by up to five years in prison and a $5,000 penalty.
The bill's current version is focused on regulating and curtailing unregulated gambling activities in Connecticut. While the new bill leaves room for promotions like grocery-linked contests that do not award cash prizes, most major sweepstakes operators will likely have to leave the state.
The original draft of SB 1235 included a provision banning third-party lottery courier services, but this was removed after a floor amendment. Critics argue that such companies obscure the fact that they are running unlicensed online casinos by using promotional marketing and complex funding schemes.
The passage of SB 1235 comes as part of a broader effort to regulate unregulated gambling activity. In May 2025, the Connecticut Department of Consumer Protection Gaming Division secured a $1.5 million settlement with a sweepstakes gaming company, further showing enforcement efforts around these platforms.
Montana recently became the first state to completely outlaw sweepstakes casinos, with several other states considering similar measures. The legislation bans sweepstakes-style gaming that mimics online casinos or sports wagering under any form.
The Connecticut Senate unanimously approved Senate Bill 1235, targeting online sweepstakes casinos and promotional games. As of now, the bill is headed to the House of Representatives before the legislature adjourns on June 4. If passed by the House of Representatives, SB 1235 will significantly curtail most sweepstakes operations in the state, effective from October 1, 2025.
Gambling operators have voiced their concerns, noting that sweepstakes face none of the oversight, licensing fees, or compliance burdens that traditional casinos face. However, lawmakers argue that the new legislation should preserve the integrity of the state-regulated market while safeguarding consumers from potential predatory practices.
The new legislation in Connecticut, targeting online sweepstakes casinos, aims to expand the Department of Consumer Protection's powers to regulate unregulated gambling activities, particularly online casino-games and gambling-trends. Upon passing, the bill will prohibit anyone unlicensed from conducting or promoting such games, elevating infractions to Class D felonies. This move is part of a broader effort to foster casino-culture within the framework of proper oversight and consumer protection.
