Connecticut has moved to within one signature of enacting a ban on sweepstakes and landing a significant blow on the vertical.
Senate Bill 1235 passed through the House and Senate, following amendments, and now only requires the signature of Gov. Ned Lamont to pass into law.
The bill targets sweepstakes by prohibiting companies from promoting a sweepstakes or promotion that is “not related to the bona fide sales of goods, services or property”. The bill criminalises conducting or promoting sweepstakes using simulated gambling devices and sweepstakes tied to online casinos and sports betting.
The legislation continues Connecticut’s lawmakers and regulators’ push to curtail sweepstakes in the state.
Last week, Connecticut’s Department of Consumer Protection (DCP) reinstated High 5 Games’ supplier licence following an agreement to pay a $1.5m settlement.
The regulator had previously suspended High 5’s licence on 14 March over allegations the firm had operated an unlicensed casino, threatening to press over 1,000 criminal charges.
As well as withdrawing its online casino offering, $643,000 of the total settlement will be paid in restitution to 794 users identified by the department who lost money to the casino.
“We are pleased that the Connecticut consumers who were lured into placing wagers on an unlicensed platform will be made whole, and that this company has ceased operations of its unlicensed casino in Connecticut,” said DCP Commissioner Bryan T. Cafferelli on the settlement.
Elsewhere in the US, legislative action against the sweepstakes vertical continues.
Last month, Montana Gov. Greg Gianforte signed Senate Bill 555, amending existing laws in the state to further specify the definition of illegal gaming and explicitly include online casinos.
The ban on online casinos in Montana “includes but is not limited to any platform, website, or application that knowingly transmits or receives gambling information, allows consumers to place a bet or wager using any form of currency”, which includes the dual-currency systems utilised by sweepstakes operators.
Meanwhile, Louisiana, New Jersey, Ohio and New York are also considering bans on the vertical.
