Connecticut and Louisiana to ban online sweepstakes casinos
Connecticut and Louisiana are taking significant legislative steps to combat the rise of sweepstakes casinos, with both states’ legislatures recently passing bills awaiting gubernatorial approval.
If these bills receive the governor’s signature, they will prohibit online platforms that offer casino-style games utilizing virtual currencies and sweepstakes mechanics, marking a pivotal shift in the regulatory landscape of online gambling.
Connecticut’s Legislative Action
In Connecticut, Senate Bill 1235 (SB 1235) achieved final approval on June 3, passing unanimously in the Senate following amendments adopted by the House. This legislation specifically targets the proliferation of sweepstakes casinos and simulated gambling platforms. Under SB 1235, operating or promoting such platforms is classified as a Class D felony, carrying potential penalties of up to five years in prison and fines reaching $5,000.
Notably, earlier provisions that sought to ban lottery courier services and ticket resales were eliminated during the legislative process, allowing for a more focused approach. Furthermore, SB 1235 introduces measures intended to bolster Connecticut’s legal gaming market. This includes empowering Governor Ned Lamont to enter into agreements for multi-state online poker liquidity and permitting wagers on specific in-state college sports tournaments under regulated conditions.
Louisiana’s Response
Similarly, in Louisiana, Senate Bill 181 (SB 181) passed both legislative chambers with a striking unanimous vote—99-0 in the House and 38-0 in the Senate. The bill is now poised for consideration by Governor Jeff Landry. SB 181 targets online games that employ dual-currency models—one being free and the other paid—where players can potentially win real-world prizes through casino-style gameplay.
The implications of this legislation are significant, as violators could face severe penalties, including fines of up to $100,000 and incarceration for up to five years. The Social and Promotional Gaming Association (SPGA), which represents businesses engaged in sweepstakes-based gaming, has publicly criticized the impending law. The SPGA argues that SB 181 blurs the distinction between legal promotions and illicit gambling, thereby jeopardizing digital innovation within Louisiana’s technology and marketing sectors.
Broader Trends in the Gambling Industry
The movements in Connecticut and Louisiana come on the heels of similar regulatory actions in Montana, which recently enacted a comparable law. These developments are part of a growing trend across several states, including New York, New Jersey, Nevada, and Ohio, all of which are actively exploring options to regulate or restrict sweepstakes casinos.
As the legislative landscape evolves, industry stakeholders must remain vigilant and adaptive to the shifting regulations. Understanding the implications of such changes will be crucial for businesses operating within the gambling sector, as well as for aspiring entrants in this rapidly expanding market.
