Connecticut Takes Aim at Sweepstakes and Online Gambling Loopholes with SB 1235
A newly introduced bill in Connecticut, Senate Bill 1235 (SB 1235), aims to tighten regulations on sweepstakes and online gambling, closing loopholes that allow unlicensed operators to run promotional lotteries with casino-style elements. The legislation introduces strict licensing rules, penalties for non-compliant businesses, and new consumer protections, ensuring greater transparency in the state’s gaming industry.
Banning Sweepstakes Casinos and Simulated Gambling
SB 1235 targets promotional sweepstakes that mimic real gambling. Businesses have used these models to offer free-to-play games with cash prizes, avoiding classification as gambling establishments.
The bill explicitly bans simulated gambling devices in sweepstakes, preventing operators from offering digital slot machines, virtual card games, or sports betting-style contests unless they hold a state gaming license.
Violators could face felony charges, license revocation, and hefty fines. The bill does allow grocery stores to run sweepstakes promotions, but only if they are linked to purchases, offer non-cash prizes, and follow strict oversight rules.
Tougher Licensing Rules for Gaming Operators
The bill also strengthens licensing requirements for businesses selling lottery tickets or running gaming operations. Applicants must pass background checks, disclose financial records, and verify corporate connections to prevent fraud.
The Connecticut Lottery Commission gains expanded enforcement powers, including the ability to suspend or revoke licenses, impose fines up to $10,000, and seize illegal gambling equipment.
Additionally, SB 1235 prohibits third-party lottery ticket couriers and bans sellers from charging more than the official retail price. These measures aim to prevent fraud and keep ticket sales within regulated channels.
Tighter Online Gambling and Sports Betting Regulations
Connecticut already allows online casinos and sports betting, but SB 1235 introduces stricter controls. The bill requires operators to verify player age and location, ensuring that all users are over 21 and physically in Connecticut. It also bans wagers on in-state college teams, except during major tournaments.
To promote responsible gambling, the bill requires online gaming platforms to provide deposit limits, self-exclusion tools, and clearer gambling risk disclosures. A portion of gaming tax revenue will fund problem gambling prevention programs.
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