Connecticut’s Senate has given its approval to Senate Bill 1235, legislation aimed at prohibiting online sweepstakes within the state. The bill, which passed with amendments in a unanimous 36-0 vote, now advances to Governor Ned Lamont’s desk for signature, poised to reshape the state’s online gaming landscape.

The legislation, sponsored by the House General Law Committee, specifically prohibits the operation or promotion of any sweepstakes or promotional draw that is “not related to the bona fide sale of goods, services or property.” This broad definition includes the use of simulated gambling devices and sweepstakes that are directly tied to online casinos and sports betting platforms. While earlier versions of the bill had provisions extending to a ban on online lottery ticket courier services and the resale of lottery tickets, these specific aspects were ultimately removed during the legislative process.

Connecticut’s move aligns it with a growing number of US states that have recently approved legislation prohibiting sweepstakes gaming in some form. Louisiana and Montana have also notably passed similar anti-sweepstakes measures.

Stricter Controls on Online Gaming

If signed into law by Governor Lamont, Senate Bill 1235 will come into effect on October 1, 2025. The bill’s passage reflects a concerted effort by Connecticut lawmakers and regulators to curtail sweepstakes operations, which are often viewed as unregulated gambling alternatives that operate in a legal grey area.

The new legislation criminalizes the act of conducting or promoting sweepstakes that utilise simulated gambling devices or facilitate real or simulated online casino gaming or sports wagering. Violations of the new legislation could result in penalties of up to five years’ imprisonment and a maximum fine of $5,000, underscoring the state’s intent to enforce these prohibitions stringently.

The legislative action arrives amidst a broader national trend to clamp down on unregulated sweepstakes casinos. Earlier in May, Montana enacted SB 555, a sweeping bill that explicitly bans all forms of online casino gaming, including those that use dual-currency systems. Louisiana has also forwarded its own anti-sweepstakes bill through its Senate, and similar legislation is progressing or being discussed in states such as Nevada, New York, New Jersey, and Ohio.

This legislative push in Connecticut is seen as a deliberate move toward consistency in online gambling regulation, with legislators increasingly viewing the line between promotional gaming and actual gambling as blurred. Many now perceive sweepstakes models as veiled online casinos operating without the oversight, taxation, or consumer safeguards present in regulated markets. For states like Connecticut, these moves are designed to preserve the integrity of their legalized gambling ecosystem, which includes regulated tribal casinos, sportsbooks, and lottery services that operate under strict rules and contribute tax revenue. The Connecticut Department of Consumer Protection (DCP) has publicly backed the bill, with Commissioner Bryan Cafferelli stating that the measure would “benefit the department by improving our regulatory oversight of the gaming industry.”

In a related development in the state last week, sweepstakes operator High 5 Games agreed to a $1.4 million settlement with Connecticut’s Department of Consumer Protection (DCP) over the operation of its “unlicensed online casino,” High 5 Casino. As part of the agreement, High 5 Games had its supplier license reinstated by the DCP, while ceasing the operation of its online casino platform in the state. The settlement included $643,000 in restitution to 794 users identified by the department who lost money to the casino.

If Senate Bill 1235 becomes law, Connecticut could set a precedent for other states looking to modernise their gaming laws and close perceived loopholes. For sweepstakes platforms, the message is clear: adapt to evolving regulatory interpretations or prepare to exit key US markets.