• The Constitution State has taken a firmer anti-sweepstakes social casino stance with the passage of the latest legislation
• Senate Bill 1235 was signed into law by Governor Ned Lamont, banning sweepstakes gaming, effective October 1
• The decision prompted an immediate and sharp rebuke from trade groups, and specifically the SPGA, which criticized the developments

Connecticut is only the second state in the United States to have recently banned sweepstakes social casinos and sweepstakes gambling, amid an unprecedented surge in anti-sector demonstrations from regulators across the nation.

Sweepstakes deemed illegal by new law in Connecticut

Governor Ned Lamont signed Senate Bill 1235, which made a final dash for his office on June 3, passed with full approval by the House of Representatives. As a result, the law now mandates that:

"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."

The decision elicited an immediate response from the Social and Promotional Games Association, whose members Blazesoft, High 5 Entertainment, Gold Coin Group, and others, with the trade group criticized the new law and argued that sweepstakes-based gaming platforms have existed and operated locally for a very long time.

"Unfortunately, Connecticut’s sweeping legislation fails to distinguish between lawful promotional sweepstakes and unregulated gambling, despite the absence of any meaningful evidence of consumer harm," a statement by the SPGA read.

Trade group warns of unintended consequences leading to loss of innovation

The SPGA criticized lawmakers for failing to engage with operators who upheld consumer protections, compliance, and responsible gambling, and cautioned that legislators have set out on a path that will inherently harm innovation, limit consumer choice, and push compliant businesses out of state.

The latest development comes after New York’s Attorney General sent 26 cease-and-desist letters to sweepstakes and social casinos, designating them "illegal."

In Maine, the gambling regulator also cautioned residents to refrain from playing at sweepstakes gaming websites as they are not, the watchdog said, regulated under state laws. The only respite sweepstakes seemed to catch was in Louisiana, where Governor Jeff Landry vetoed Senate Bill 181, which wanted to create even stricter language surrounding sweepstakes casinos.

However, Landry’s decision is not because he broke ranks with legislators, but rather, because he believed that the existing legislation was already good enough in designating sweepstakes casinos as an illegal form of operation.

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