Valentine’s Day Massacre Set for Online Sweepstakes Casinos in Connecticut
Connecticut Lawmakers Target Sweepstakes Casinos with Valentine’s Day Hearing
Sweepstakes Casinos Face Connecticut Crackdown on Feb. 14
In a surprise move that could leave sweepstakes casinos heartbroken, Connecticut lawmakers have scheduled a public hearing for Senate Bill 1235 on February 14, 2025. Despite the date, it’s not going to be a romantic affair for operators of sweepstakes casinos as the state is looking to ban this type of online casino.
The hearing will be before the General Law Committee of the Connecticut General Assembly and it’s not looking good for sweepstakes casinos as they are not in the mood for love regarding sweepstakes with “real or simulated online casino gaming or sports wagering.”
Legal expert Daniel Wallach explained the significance of this event in a post, stating, “This is an actual public hearing with testimony…”
SB 1235, a 30-page proposal, was actually filed by the General Law Committee, on February 4, instead of having an individual sponsor. The bill is poised to break hearts across the sweepstakes gambling industry.
If passed it will make engaging in these activities a Class D felony. Yes, that’s a 5-year prison sentence and a $5,000 fine. Talk about a relationship on the rocks.
A public hearing on the Connecticut bill to ban online sweepstakes casinos (SB 1235) has been scheduled for Feb. 14. pic.twitter.com/wIbqJ5wfs3
— Daniel Wallach (@WALLACHLEGAL) February 7, 2025
No Valentine for Sweepstakes
This legislative love letter to regulation comes as sweepstakes casinos have been playing the field in a legal gray area. They’ve been wooing players with real money prizes while dodging traditional gambling regulations.
Unlike regular online casinos that comply with regulatory approval and regulation, sweepstakes casinos use a model where players purchase virtual currency, often called “gold coins”, for gameplay, receiving free “sweeps” entries as a bonus.
These sweeps can then be used to play casino-style games with winnings sometimes redeemable for cash prizes.
Technically Not Cheating
Since these platforms technically don’t require a direct exchange of money for gambling, operators argue they fall outside traditional gambling regulations.
But regulators and lawmakers across the US are increasingly scrutinizing this model, saying it’s essentially real money gambling but without consumer protection and tax obligations.
Not Alone After All
In other casino news, turns out that the Nutmeg State isn’t alone in its quest to ghost sweepstakes casinos. Lawmakers in Maryland introduced similar gambling legislation (SB 860) on January 28th, proving that love is indeed in the air only when it comes to sweeping these operators out the door.
As of February 2025, about eight states are flirting with the idea of online casino legislation, while seven states have already authorized and launched the expansion of online casinos. Connecticut’s potential ban could be the heartbreaker that changes the national landscape of online gambling regulations.
As the stakeholders get ready to bare their hearts at the public hearing one thing is for sure: when it comes to online gambling regulations for sweepstakes casinos, in Connecticut, there’s no love lost.
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