for early access to the latest igaming videos!
and get the latest igaming news first!
The US sweepstakes industry has been hit with yet another blow, as Connecticut has signed into law a bill that officially bans sweepstakes casinos in the state, following in the footsteps of Montana.
Senate Bill 1235 was signed by Connecticut Governor Ned Lamont last Wednesday after receiving unanimous support in both chambers earlier this year. It cleared the Senate with a 36-0 vote and then the House, with a 140-0 vote.
Public Act 25-112, as the law is now known, prohibits the operation or promotion of sweepstakes that use simulated gambling devices or facilitate any form of online casino gaming and sports wagering unless operators have specific state licenses. The law also defines activities related to unlicensed sweepstakes as common nuisances, subjecting them to seizure and imposing penalties for those who engage in such practices.
Effective October 1, the legislation clarifies that sweepstakes must be directly related to the sale of goods or services, allowing retail grocery chains to engage in limited promotional activities. The retail grocery chain must have at least five branches, and even then, they are only allowed to give out prizes that serve as store discounts and not cash rewards.
Violating these provisions will be classified as professional gambling, deemed a Class A misdemeanor, and categorized as unfair or deceptive trade practices.
Betting on Boxing and Intercollegiate Sports Now Legal
The new law does come with some good news for sports betting fans in the Constitution State. It opens the door for wagering on boxing and mixed martial arts, activities that were previously off-limits.
Under the new regulations, betting is also permitted on tournaments featuring Connecticut intercollegiate teams, provided that there are at least four teams involved. Bettors can place wagers based on the outcomes of all games within the tournament, focusing on which team will ultimately win.
Interestingly, the initial proposal included a ban on lottery ticket couriers and secondary sales, but these provisions were removed during the legislative process.
SPGA Unhappy with Decision
As expected, one of the two major sweepstakes casino trade groups in the US, the Social and Promotional Games Association (SPGA), has come out to share its disappointment with the decision. According to a spokesperson for the groups, “Connecticut’s sweeping legislation fails to distinguish between lawful promotional sweepstakes and unregulated gambling, despite the absence of any meaningful evidence of consumer harm.”
“Instead of engaging with operators who prioritise consumer protections, compliance, and responsible standards, lawmakers have chosen a path that will harm innovation, limit consumer choice, and push compliant businesses out of the state.
“SPGA remains committed to advocating for sound, informed policy that reflects the clear legal distinctions between sweepstakes and gambling.”
Who’s Next?
As Connecticut takes significant steps to ban sweepstakes gambling, the focus shifts to other states considering similar actions. Sweepstakes sites, which allow customers to wager with free coins while also permitting the purchase of additional coins with real money or cryptocurrency, have faced increasing scrutiny. Regulators all over the country have been pursuing stricter regulations in the past year.
Montana recently became the first state to implement a ban on these platforms, setting a precedent that others may follow. New York is currently gaining momentum with its own legislative efforts. The New York Senate has passed SB 5935, a bill aimed at outlawing online sweepstakes games and curbing revenue from illegal markets. The proposed bill includes hefty fines ranging from $10,000 to $100,000, depending on the violation.
In a more proactive move, New York Attorney General Letitia James announced that her office sent cease-and-desist letters to 26 operators violating state gambling laws. “There are operators conducting business inside our State that are running afoul of New York’s penal restrictions on unlawful gambling,” stated the New York State Gaming Commission.
Meanwhile, Louisiana’s attempt to ban sweepstakes casinos faced a setback when Governor Jeff Landry vetoed the proposal, labeling it as “unnecessary.” As legislative sessions across the country come to a close, all eyes will be on how states respond and whether any additional bans will be implemented.
Source: NEXT.io
