Sweepstakes casinos and lottery couriers near ban in Connecticut

Connecticut’s 22-0 bill to ban sweepstakes casinos is going ahead to the Senate floor. The bill will also ban lottery couriers, as the state tries to curb alternative gambling outlets that go unregulated.

SB 1235 won out in March, with a 22-0 vote, as the state looks to put a blanket ban on sweepstakes casinos. The bill was unanimously voted on (37-0) in the Judiciary Committee in April as well. This follows other states like New York and New Jersey, which are seeking to ban the new style of online casino.

Sweepstake casinos operate by using two currencies. One, typically called “gold coins,” allows you to play casino games with no monetary gain. These are then bundled with “sweep coins,” which can then be used to gamble with. There are rarely any restrictions in place for purchasing these bundles, and states haven’t found a method of regulating it as of yet, so they are seeking a ban to curb gambling addictions.

In particular, the bill specifies that “no person shall conduct or promote a sweepstakes or promotional drawing…. that uses a simulated gambling device… or simulated online casino gaming or sports wagering.”

It also goes on to exempt places like stores running sweepstakes through a “simulated gambling device”, as long as the prize cannot be redeemed for cash and relates to the stores’ goods.

Those operating these types of businesses, if the Senate passes the bill, will be hit with a Class D felony, which carries up to five years in prison and a $5000 fine.

SB 1235 also brings with it a ban on lottery couriers. These companies act on the purchaser’s behalf, sending over the scanned ticket after buying it through an app or website. This can be abused, as found in Texas in 2023. One user managed to buy all 25.8 million combinations and made away with $95 million. The man who won was based in Malta.

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