What Connecticut’s Crackdown on Sweepstakes Casinos Means

Love is definitely not in the air this Valentine’s Day in Connecticut for the operators of sweepstakes casinos. February 14 will see a public hearing for Senate Bill 1235 in the Constitution State.

The impact of this session is likely to be felt far beyond the borders of Connecticut, with legislators and operators alike interested to see which way the legal wind is blowing on this issue.

One of the clauses in SB 1235 stipulates that “persons conducting sweepstakes or promotional drawings shall not allow or facilitate participation in certain real or simulated online casino gaming or sports wagering”.

This goes to the heart of the unease felt in many states, particularly those in which real-money online gambling is not allowed, over the widespread availability of sweepstakes casinos.

Sweepstakes casinos operate in a legal gray area. Players buy virtual currency to play games, and some of their winnings may be in the form of entry to sweep games – where wins are sometimes rewarded with cash prizes.

Operators of sweepstakes casinos have always argued that, because their platforms do not require customers to directly exchange real money for gambling, they are not breaking any laws.

However, the regulatory mood around this stance is clearly becoming less accepting. 

Even social casinos, which do not operate sweepstakes games but invite customers to spend real money on gold coins, may fall foul of the new legislative antipathy building against this type of operator.

It will be no surprise whatsoever if SB 1235 is passed. The recommendations within it – including the crackdown on sweepstakes casinos – come from the Department of Consumer Protection, the body in charge of gaming regulation in Connecticut. 

Also, the bill was introduced by the state Senate’s full Committee on General Law, rather than being sponsored by a single legislator.

That indicates there is strong support for this measure in a state with a recent history of hostility to sweepstakes casinos. The Department of Consumer Protection issued a cease-and-desist order in October 2024 to VGW, a leading name in this sector.

VGW complied reluctantly – and has also exited Michigan after a similar request. 

Observers in many other states will be watching events in Hartford with interest. There are moves to introduce similar restrictions in Mississippi and New York, while there have been reports that West Virginia is preparing subpoenas against sweepstakes casino operators. Maryland and California may also be ready to act in a similar way. 

Earlier this week, we reported that High 5 Games had been ordered to pay nearly $25 million in damages to players in Washington State. 

The fact that the Department of Consumer Protection is driving Connecticut’s opposition to sweepstakes casinos is also significant because its measure bolsters the position of gambling operators working legally under license in the Constitution State.

Tribes and authorized sportsbooks are likely to support such legal moves here and elsewhere. They see sweepstakes casinos as a threat to their turnover and profits. And the more people who play with licensed operators, the higher a state’s tax revenue will be.  

For so many reasons, Connecticut could be the stage for a Valentine’s Day massacre of sweepstakes casinos.