Connecticut and Louisiana are moving forward with sweeping measures to ban sweepstakes casinos, as both states’ legislatures have passed bills that now await gubernatorial approval.
If signed into law, these bills would outlaw online platforms offering casino-style games that use virtual currencies and sweepstakes mechanics.
In Connecticut, Senate Bill 1235 (SB 1235) received final approval on 3 June, passing unanimously in the Senate after the House adopted amendments. The bill targets the rise of sweepstakes casinos and simulated gambling, making it a Class D felony to operate or promote such platforms – punishable by up to five years in prison and a $5,000 fine.
Earlier provisions that also banned lottery courier services and ticket resales were removed during the legislative process. SB 1235 also includes language aimed at enhancing the state’s legal gaming market, such as allowing Gov. Ned Lamont to enter agreements for multi-state online poker liquidity and permitting wagers on in-state college sports tournaments under specific conditions.
Meanwhile, in Louisiana, Senate Bill 181 (SB 181) passed both chambers unanimously, 99-0 in the House and 38-0 in the Senate. It now heads to Gov. Jeff Landry for final approval. The bill targets online games using dual-currency models – one free, one paid, where players can win real-world prizes through casino-style gameplay.
Violators in Louisiana could face penalties of up to $100,000 and up to five years in prison. The Social and Promotional Gaming Association (SPGA), which represents companies offering sweepstakes-based games, criticized the legislation. It argued that the bill blurs the line between lawful promotions and illegal gambling, potentially stifling digital innovation in Louisiana’s tech and marketing industries.
These developments follow Montana’s recent enactment of a similar law and come amid ongoing efforts in states like New York, New Jersey, Nevada, and Ohio to regulate or restrict sweepstakes casinos.
