Connecticut Moves to Ban Simulated Online Casinos and Sports Betting

The goal of the proposed measure (No. 1235), which was submitted by the Connecticut General Law Committee on February 4, is to limit sweepstakes that involve “real or simulated online casino gaming or sports wagering.” Additionally, according to sports betting and gambling lawyer Daniel Wallach on X, the proposed legislation makes participation in these activities a Class D crime.

If approved, the law would punish individuals found guilty with a $5,000 fine and a maximum sentence of five years in prison. Crimes such as cyberstalking, bail jumping, and criminal mischief are examples of Class D felonies in Connecticut. For additional review, the bill was sent to the state’s Joint Committee on General Law on February 5.

Key Provisions of the Bill

The bill’s summary outlines several key proposals related to gaming regulations. It focuses on:

1. Prohibiting the resale of lottery tickets and courier services for tickets.
2. Expanding the disciplinary authority of the Commissioner of Consumer Protection concerning specific gaming licensees.
3. Requiring vendor and affiliate licensees to maintain proper records.
4. Modifying how certain terms related to gaming are defined.
5. Revising provisions for wagers involving Connecticut intercollegiate teams.
6. Restricting who can review certain criminal history records checks.
7. Banning specific advertising practices.
8. Allowing bets on boxing and mixed martial arts.
9. Prohibiting sweepstakes from facilitating real or simulated online casino gaming or sports wagering.

Additionally, the bill proposes that individuals involved in professional gambling would face Class D felony charges.

Impact on Connecticut’s Gaming Landscape

iGaming and sports betting are currently available from FanDuel and DraftKings, both of which are lawfully based in Connecticut. However, Virtual Gaming Worlds (VGW) Holdings, based in Australia, was ordered to stop operating in Connecticut by the Connecticut Department of Consumer Protection in October. The biggest sweepstakes-based casino in operation in the United States is VGW.

With a “no purchase necessary” policy, gamers can play online casino games at sweepstakes casinos, which are permitted in 47 states. Traditional internet casinos that need deposits in order to play are not like these sweepstakes.