In the U.S., the states of Connecticut and Louisiana have passed bills banning sweepstakes casinos
In the U.S., the states of Connecticut and Louisiana have passed bills banning sweepstakes casinos, which are awaiting the governors’ signatures to take effect.
What happened in Connecticut?
Bill SB01235 passed the Senate
On June 3, 2025, Bill SB01235 completed all legislative stages and received the status “In Concurrence”, which means agreement by both chambers of the Connecticut state legislature.
The document now awaits the governor’s signature to become law.
Main provisions of Bill SB01235
The bill covers a number of measures aimed at regulating gambling in the state:
- Ban on reselling lottery tickets and intermediary services for ticket delivery;
- Expansion of the powers of the Consumer Protection Commissioner for disciplinary actions against licensees;
- Requirement for providers and affiliates to provide books and records for inspection;
- Clarification of terms related to gaming legislation;
- Restriction on betting on sporting events involving Connecticut university teams;
- Restrictions on criminal background checks for certain categories of persons;
- Ban on certain advertising of gambling services;
- Permission for betting on boxing and mixed martial arts;
- Direct ban on participation in online casinos and sports betting through sweepstakes and promotional drawings;
- Criminal liability (Class D felony) for professional gambling;
- Repeal of the provision allowing the Commissioner to appoint a director.
What this means for sweepstakes casinos
Ban on participation through “drawings”
The document stipulates that individuals conducting sweepstakes or promotional drawings must not allow or facilitate participation in any real or simulated online casinos or sports betting.
This effectively closes loopholes that sweepstakes casinos previously used to offer games while circumventing legislation.
Louisiana’s position
A similar bill has been passed
Louisiana has passed its own bill with a similar focus, also aimed at banning unlicensed sweepstakes casinos, which often masquerade as “free entry” drawings with in-game purchases.
The documents from both states align with legal frameworks for combating illegal gambling.
What are the consequences for players and operators
| Category | Changes |
|---|---|
| Operators | Ban on operating via promo-lotteries and virtual platforms without a license |
| Users | Inability to participate in simulated casinos and betting via sweepstakes apps |
| Advertisers | New restrictions on promoting gambling online |
What’s next?
The initiative now depends on the governors of the states. Once signed, the laws will take effect and impact the online gaming market, particularly in gray zones where operators have used legal loopholes.
The measures being taken reflect a stricter approach to regulating sweepstakes casinos amid growing concern over illegal gambling.