Connecticut Joins Montana as Second State to Prohibit Sweepstakes Social Casinos Operation
In a bold move, the Constitution State has officially marked its territory as unfriendly to sweepstakes social casinos, following the passing and signing of Senate Bill 1235. This bill temporarily puts a halt to sweepstakes gaming activities, effective October 1, making Connecticut the second state in the country to take a firm stand against such practices.
Naturally, the news sparked controversy and backlash from industry stakeholders, with the Social and Promotional Games Association (SPGA) leading the charge. The SPGA accused lawmakers of poor judgment and singled out the state's recent decision as an example of misguided legislation that locates sweepstakes-based gaming platforms in a legal grey area.SPGA members, such as Blazesoft, High 5 Entertainment, and Gold Coin Group, have been long-standing operators in the area.
Despite the SPGA's contentions, Connecticut lawmakers argued that the new legislation was necessary to clarify the difference between lawful promotional sweepstakes and unregulated gambling, addressing the absence of proven consumer harm.
The wave of anti-sweepstakes sentiment is not exclusive to Connecticut. In New York, the Attorney General sent cease-and-desist letters to numerous social casinos, labeling them "illegal." Similarly, Maine's gambling regulator warned residents against using sweepstakes gaming websites, citing a lack of local regulation.
The only positive news for sweepstakes casinos came from Louisiana, where Governor Jeff Landry vetoed Senate Bill 181, which aimed to strengthen the language surrounding sweepstakes casinos. His decision was not an act of defiance towards the legislature but rather a reflection of his belief that the existing legislation already adequately designated sweepstakes casinos as an illegal form of operation.
Looking ahead, four US states, namely Washington, Michigan, Montana, and Connecticut, have imposed bans or restrictions on sweepstakes casinos, with Idaho limiting cash prize winnings. Trade groups are increasingly engaged in shaping the landscape of sweepstakes casino legislation, particularly in states like New York, where they have challenged new bills that threaten common sweepstakes and marketing practices employed by major brands.
In the face of these rapid changes, it remains to be seen how the sweepstakes casino industry will adapt and evolve in response to the stringent regulations imposed by various state governments.
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Enrichment Data:- Washington, Michigan, Montana, and Connecticut have banned or restricted sweepstakes casinos. Idaho has limited cash prize winnings for sweepstakes casinos.- New York's Social and Promotional Games Association (SPGA) has challenged new legislation that could impact sweepstakes and marketing practices employed by major brands.
Sweepstakes casinos in Connecticut, following the ban, are now seeking alternative ways to legally operate, as they have been major operators in the area. The SPGA, in New York, has been actively challenging new bills that could impact sweepstakes and marketing practices, similar to those employed by major brands.
