Connecticut has now officially become the second state after Montana to ban sweepstakes operators after Governor Lamont signed the online sweepstakes casino ban, SB 1235, into law. The ban on sweepstakes operators will take effect on the 1st of October and is actually part of some broader changes in regulations and laws that are set to take place across the state.

Connecticut has officially become the second state in 2025 to enact a ban on online sweepstakes casinos, as Governor Ned Lamont signed Senate Bill 1235 into law last Wednesday. The legislation, which includes a broad range of changes to gaming laws and regulations, will go into effect on the 1st of October.

The measure aims to tighten oversight of gambling operations in the state by outlawing simulated gambling devices not tied to legitimate commercial activity. Connecticut joins Montana, which enacted a similar ban in May, in pushing back against the rise of online sweeps casinos that operate outside the state's licensed gaming ecosystem.

A unanimous legislative push

SB 1235 passed the Connecticut House with unanimous approval on June 3 before moving to the Senate for concurrence and eventually landing on Lamont's desk. The bill gained swift support amid growing concerns about consumer protection and the unregulated nature of sweepstakes-based gaming.

While lawmakers emphasized player safeguards, the bill's quick passage has drawn criticism from some in the emerging sweeps gaming sector. The Social Gaming Leadership Alliance, a newly-formed industry advocacy group, expressed disappointment in a statement following the House vote.

"This bill was hastily passed based on incomplete information with little attempt to engage with legitimate industry operators that prioritize player protections," said Jeff Duncan, the SGLA's Executive Director. "The result is a win for the black market, and other groups with vested interests that campaigned for this bill with falsehoods and misinformation. It is a loss for innovation, competition, free choice and potential benefits for the State of Connecticut."

What the bill bans - and what it doesn't

The new law specifically prohibits sweepstakes or promotional drawings that either do not involve the bona fide sale of goods or services, use simulated gambling devices, or facilitate participation in real or simulated sports wagering or online casino gaming without appropriate licensure under state law.

Critics of the bill raised concerns it could unintentionally affect retail sweepstakes programs offered by grocery chains or major retailers. Legislators, however, included language to address that concern. Sweepstakes operated by retail grocery chains - defined as those with five or more locations where grocery sales are the primary business - remain legal as long as prizes cannot be redeemed for cash and only serve as discounts on purchases.

A booming gaming economy

Connecticut is one of only seven US states with regulated online casino gaming. According to the state's latest revenue reports, the first four months of 2025 have already brought in $34.4 million in state tax revenue from online casinos, marking a 31.6% increase over the same period in 2024. Legal sports betting also contributed $9.4 million in tax revenue, up nearly $1 million year-over-year.

State officials maintain that the sweeps casino ban is meant to protect this growing revenue stream by ensuring only licensed and regulated platforms are permitted to operate in Connecticut.

New sports betting rules for UConn fans

The new legislation also includes provisions for sports bettors in Connecticut, particularly those who follow in-state college teams. Under SB 1235, residents will now be allowed to place bets on tournaments involving Connecticut schools - including powerhouse programs like UConn - provided the tournament features at least four teams and wagers are placed on the tournament as a whole, not individual games.

This change opens the door for UConn basketball fans to back their teams in postseason play via operators like DraftKings, FanDuel, and Fanatics. Though the UConn men's bid for a historic NCAA 'three-peat' ended early in 2025, the women's team will begin the 2025-26 season as reigning national champions under legendary coach Geno Auriemma.

While the ban on online sweepstakes casinos has drawn a mixed response, Connecticut lawmakers view it as a necessary step to safeguard consumers and maintain the integrity of the state's regulated gaming market. Whether other states follow suit - as New York inches closer with its own legislation - remains to be seen, but for now, Connecticut has drawn a firm line.