Connecticut Gov. Lamont Signs Online Sweeps Ban Into Law

Connecticut became the second state this year to enact a ban on online sweepstakes casinos Wednesday when Gov. Ned Lamont signed SB 1235 into law.

The sweeps ban will take effect Oct. 1 and was part of a series of changes across multiple gaming verticals in the Nutmeg State. The bill passed through the House in unanimous fashion June 3, and it went to Lamont’s office for his signature after the Senate completed concurrence.

The recently formed Social Gaming Leadership Alliance (SLGA) released a statement after the bill was voted forward by the House last week, with Executive Director Jeff Duncan saying it was “hastily passed based on incomplete information with little attempt to engage with legitimate industry operators that  prioritize player protections.

“The result is a win for the black market, and other groups with vested interests that campaigned for this bill with falsehoods and misinformation. It is a loss for innovation, competition, free choice and potential benefits for the State of Connecticut.”  

Montana was the first state to enact a ban on online sweeps this legislative calendar year after Gov. Greg Gianforte signed SB 555 into law May 12. New York has moved similar legislation forward via SB 5935, which easily passed in the Senate by a 57-2 vote Wednesday night and is currently in committee in the Assembly.

Specifics of the bill

The relevant part of the Connecticut bill that pertains to banning sweepstakes casinos states, “No person shall conduct or promote a sweepstakes or a promotional drawing authorized by the provisions of section 53-278g that (1) is not related to the bona fide sale of goods, services or property, [or] (2) uses a simulated gambling device, or (3) allows or facilitates participation in any real or simulated online casino gaming or sports wagering, unless such person is licensed under chapter 229b.”  

Connecticut is one of seven states with regulated online casino gaming, and it has generated $34.4 million in state tax revenue through the first four months of the year. That is an increase of 31.6% ($8.3 million) compared to the same period in 2024. State tax revenue from sports betting has totaled $9.4 million, up nearly $1 million.

One point of contention from proponents of online sweepstakes casinos is the ban can lead to unintended consequences of similar bans for retail grocery chains that have membership rewards programs.

Legislators, however, addressed that specific contingency in the bill and said sweepstakes are legal where “the prize is not redeemed or redeemable for cash and the prize is only used as a discount to reduce the price of items purchased from such retail grocery chain.”

The bill established the definition of a retail grocery chain as an operator or franchisor with five or more establishments “whose primary business is the sale of groceries.”

Something for UConn fans, too

Connecticut college basketball fans, who have FanDuel, DraftKings, and Fanatics to choose from for mobile sports betting options, will be able to wager on their team or other in-state colleges on a limited basis during basketball season. SB 1235 allows for wagering on events with a minimum of four teams involving one Connecticut-based school provided the “wager on the tournament is based on the outcome of all games within the tournament.” 

Though the UConn men’s team had its bid for a historic “three-peat” end in the second round of the NCAA Tournament, the women’s team will enter 2025-26 as the reigning NCAA champion after coach Geno Auriemma won his 12th title. The state’s other five Division I basketball teams are Yale, Fairfield, Central Connecticut State, Quinnipiac, and Sacred Heart.