CT and NJ Intensify Efforts in Sweeps Promotion Enforcement

Proposals aimed at banning sweepstakes casinos have made significant strides in both Connecticut and New Jersey recently. In Connecticut, the bill SB1235 is nearing a floor vote after passing through the legislative committee, signaling strong bipartisan support.

This proposal seeks to prohibit any unlicensed entity that facilitates online casino gaming or sports wagering, classifying such activities as felonies. With over half of sweepstakes operators currently active in Connecticut, the bill, if enacted, could lead to a substantial industry shift.

SB1235 encompasses broader concerns relating to gaming, including the regulation of lottery ticket couriers and avenues for the state to establish gaming compacts with other jurisdictions. Lawmakers have until June 4th to get the bill to the governor for approval, highlighting the urgency for legislative action.

Several anti-sweepstakes measures in states like Maryland and Florida have already failed to meet their deadlines, underscoring the challenges these proposals can face. In New Jersey, the bill A5447 has also gained traction, passing through the relevant committee after being introduced nearly two months ago.

The state’s ongoing legislative session allows more time for thorough discussions. A5447 has a complementary bill in the Senate, S4282, which also seeks to ban sweepstakes casinos within the state.

Both bills define sweepstakes in detail, including the use of dual-currency systems to award prizes. Should they pass, the penalties for unauthorized operations in New Jersey are significant, with fines reaching $100,000 for initial offenses and $250,000 for subsequent infraction.

Testimonies from key figures in the gambling sector have bolstered support for these measures. While Connecticut appears closer to finalization, New Jersey’s extended legislative timeline could yield more deliberative outcomes.

The progress these states make could reflect on Montana, which is on the verge of becoming the first state to officially ban sweepstakes casinos following successful legislative passage.

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