Governor Ned Lamont signed Senate Bill 1235 into law on June 3, 2025, making Connecticut the second US state after Montana to ban sweepstakes-style online casino and sports betting operators. The substantive provisions took effect October 1, 2025.
What the Bill Prohibits
SB 1235 prohibits sweepstakes gaming operators from allowing or facilitating participation in:
- Online casino-style gaming (slots, table games, etc.) operated under a “sweepstakes” framework that uses dual-currency models (e.g., Gold Coins and Sweeps Coins) to skirt traditional gambling regulation
- Sports wagering offered under similar sweepstakes structures
Sweepstakes operators had grown rapidly across the US by arguing that their dual-currency models — where players buy one virtual currency that can’t be redeemed for cash, but receive a second “promotional” currency that can — fall outside state gambling licensing requirements. Connecticut’s law explicitly closes that path.
Additional Provisions
The bill goes beyond sweepstakes-specific language to broadly strengthen enforcement:
- Class D felony — Operating an illegal gambling business is now a Class D felony in Connecticut, punishable by up to five years in prison and a $5,000 fine.
- Lottery courier ban — The bill prohibits lottery ticket resales and third-party courier services that purchase tickets on behalf of customers.
- Regulatory oversight — Strengthens DCP’s authority to investigate and pursue illegal gaming businesses.
Why CT Acted
Connecticut’s three-operator structure under Public Act 21-23 was designed to channel all sports betting and online casino activity through licensed and taxed operators (FanDuel, DraftKings, Fanatics for sports; tribal-operated apps for online casino). Sweepstakes operators bypassed that structure entirely — they offered casino and sports betting products to CT residents without holding state licenses, paying state taxes, or contributing to problem-gambling funds.
The tribal gaming compacts that underpin Connecticut’s licensed operator structure also depend on operator exclusivity. Allowing sweepstakes operators to compete without licensing would have eroded the value of the tribal compacts and the CT Lottery sportsbook license.
Impact on Connecticut Bettors
For CT bettors, the practical effect is that sweepstakes-branded casino and sports betting apps that may previously have accepted CT customers must now block them or face Class D felony exposure. Most major sweepstakes operators withdrew from the CT market in the months leading up to the October 1, 2025 effective date.
The CT regulated market — FanDuel, DraftKings, Fanatics for sports; and licensed tribal online casino operators — remains the only legal channel for online sports and casino wagering in the state.
Read our full Connecticut sports betting legislation tracker for more on the regulatory landscape.