Connecticut Moves to Ban Simulated Online Gambling
Key Takeaways
Connecticut plans to ban simulated online casinos and sports betting. A bill (No. 1235), submitted by the General Law Committee on February 4, aims to regulate sweepstakes that involve “real or simulated online casino games or sports betting.” Violations could be classified as a Class D felony, carrying a fine of up to $5,000 and a maximum prison sentence of five years. The bill has been forwarded to the Joint Committee on General Law for further review.
Main Provisions of the Bill
The bill includes several key provisions related to gambling regulation:
– **Ban on the resale of lottery tickets and courier services for tickets.**
– **Expansion of the disciplinary powers of the Consumer Protection Commissioner.** This applies to certain gambling licensees.
– **Requirement for proper bookkeeping.** Licensed operators and affiliates must maintain accurate records.
– **Redefinition of certain gambling-related terms.**
– **Adjustment of rules for betting on local college teams.**
– **Restrictions on reviewing certain criminal records.**
– **Prohibition of certain advertising practices.**
– **Permission for betting on boxing and mixed martial arts.**
– **Ban on sweepstakes that allow simulated online casino games or sports betting.**
Additionally, professional gambling would be classified as a Class D felony.
Impact on Connecticut’s Gambling Landscape
Currently, operators FanDuel and DraftKings offer legal iGaming and sports betting services in Connecticut. However, in October 2024, Virtual Gaming Worlds (VGW) Holdings, an Australian company, was ordered by the Department of Consumer Protection to cease operations in Connecticut. VGW operates the largest sweepstakes-based online casino in the U.S.
Sweepstakes-based online casinos, like those offered by VGW, differ from traditional online casinos. They allow gameplay without mandatory deposits and are legal in 47 U.S. states. In contrast, traditional internet casinos require deposits to play.
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Our Assessment
If the bill is passed in Connecticut, it could have significant implications for the state’s gambling industry. Sweepstakes-based operators like VGW would be particularly affected. At the same time, the bill indicates that Connecticut is tightening its gambling regulations and strengthening consumer protection. For players and operators, this means stricter rules and potential limitations. It remains to be seen how these changes will impact the market and players.
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