- Connecticut banned online sweepstakes casinos via SB 1235, signed June 11, 2025, by Gov. Ned Lamont, effective October 1, joining Montana as the second U.S. state.
- The unanimous law, a Class D felony with $5,000 fines and five years prison, targets unregulated dual-currency platforms; critics warn of innovation loss.
- The $1.8B market, with $375M Q1 iGaming revenue, aims to protect players, but risks pushing bets to offshore sites; use licensed platforms like BetMGM.
Why Connecticut Banned Sweepstakes Casinos
On June 11, 2025, Governor Ned Lamont signed Senate Bill 1235, effective October 1, 2025, making Connecticut the second U.S. state after Montana to outlaw online sweepstakes casinos.
The state’s $1.8 billion gambling market, one of seven with regulated online casinos, generated $34.4 million in tax revenue from iGaming in Q1 2025, up 31.6% from 2024.
Sweepstakes platforms, using dual-currency systems in a legal gray area, bypass oversight, prompting bipartisan support to shield consumers from fraud and addiction risks. You can see the worry: unregulated sites challenge a tightly controlled market.
See also:
- Romania’s Church Joins Fight Against Problem Gambling in National Strategy
- Brazil’s Betting Boom: 73% of Bettors Use Illegal Sites in 2025
- New Jersey’s Online Gambling Revenue Soars to Record $246.8M in May 2025
Details of the New Law
SB 1235, passed unanimously with a 36-0 Senate vote, bans sweepstakes or promotional drawings unless licensed under state gaming laws. It prohibits platforms with simulated gambling devices or unlicensed online casino gaming, classifying violations as a Class D felony with up to five years in prison and $5,000 fines.
The law also bans third-party lottery couriers like Jackpocket. Industry groups argue the ban conflates legal sweepstakes with illegal gambling, potentially stifling innovation. You might notice the clash: regulators prioritize safety, while some fear the law overreaches.
Impact on Connecticut’s Gambling Industry
Connecticut’s regulated iGaming, led by FanDuel and DraftKings, generated $375 million in Q1 2025. The ban aims to funnel players to licensed platforms, but critics warn it could drive bettors to offshore sites, which took 15% of U.S. bets in 2024.
For you, this means sweepstakes platforms like Chumba Casino are out, but state-approved sites offer safer bets. Mixed reactions on X show support for consumer protections alongside gripes about losing free-to-play games.
With Montana, Nevada, and New York targeting sweepstakes, a national push is underway. You might wonder: will this tidy up gambling or boost black markets?
What’s Next for Connecticut’s Gambling Landscape
The ban starts October 1, 2025, giving operators time to exit, as some like VGW and High 5 Casino already have. Connecticut’s Department of Consumer Protection will enforce compliance, following 12 cease-and-desist orders in 2024.
Legal iGaming and sports betting, taxed at 18% and rising to 20% in 2026, remain strong. You might be curious about safe betting: stick to state-verified platforms like BetMGM. As states tighten rules, Connecticut’s $1.8 billion market faces a critical moment to balance innovation and player safety.
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