Connecticut House Passes HB 5269 to Curb Gambling Ads and Credit Card Use

A Push to Rein in Problem Gambling

Connecticut’s House of Representatives passed House Bill 5269, titled “An Act Concerning Gaming Advertisements and Permissible Payment Mechanisms for Online Gaming Accounts,” with a 100-46 vote.

The bill, proposed by Representative David Rutigliano, targets rising concerns over problem gambling, particularly among young men. “This is a common-sense approach to some of the problems we’re seeing throughout society,” Rutigliano said, citing cases where spouses racked up gambling debts on shared credit cards without consent.

The legislation, now in the Senate’s hands, seeks to tighten payment rules and restrict predatory advertising, though its fate remains uncertain as the legislative session ended June 4.

Stricter Payment Rules

HB 5269 introduces tough controls on how online gambling accounts are funded. It bans using more than one credit or debit card per account and sets monetary limits on credit card use over time. Operators must obtain consent from all holders of jointly owned cards before processing charges, addressing stories of hidden debts on shared accounts.

The bill allows single-use stored-value instruments, like gift cards or lottery terminal vouchers, but only if bought with cash or debit cards. These measures aim to reduce impulsive betting and protect vulnerable players.

The bill’s advertising reforms are equally bold. It prohibits gaming companies from offering financial incentives, like bonuses or promotional credits, to lure players, a practice the Connecticut Council on Problem Gambling calls “highly targeted” and harmful to those at risk.

“By prohibiting these inducements, this bill prioritizes consumer protection,” said Executive Director Diana Goode. Ads cannot target those under 21, or 18 for keno and lotteries, nor those on self-exclusion lists. They must state the minimum gambling age and avoid misleading claims.

Lemar compared the ad limits to cigarette bans, saying, “We took cigarettes out of magazines to protect kids, and we should do the same for gambling.”

Legislative Journey

Introduced by Rutigliano, HB 5269 cleared the General Law Committee with a Joint Favorable report on March 21, before moving to the Committee on Finance, Revenue, and Bonding. After heated House debates, it passed with amendments, reflecting concerns about addiction and tribal gaming compacts.

Sent to the Senate for a second reading, the bill’s timing, just hours before the session’s close, left its outcome unclear. If enacted, it would start on October 1.

The bill faces stiff opposition. The Connecticut Lottery Corporation (CLC) supports its intent but warns that requiring consent from all joint account holders is technically unfeasible, potentially leading operators to ditch card payments entirely.

“This could negatively impact state revenue,” a CLC spokesperson said, noting the state’s 25% cut of tribal casino slot wins. Industry giants like Fanatics, DraftKings, and Mohegan Digital echoed this, with Fanatics’ Brandt Iden testifying, “No banking system can confirm all account holders’ approval before a deposit.”

They argue banning promotional credits will drive players to unregulated offshore sites, cutting legal operators’ revenue and state taxes. The Mashantucket Pequot Tribal Nation raised concerns about the bill’s lack of tribal input, with Representative Anthony Nolan noting, “It feels like we’re taking something away from negotiated tribal agreements.”