Connecticut lawmakers approved multiple changes concerning sports betting this week, sending them on to Gov. Ned Lamont on the last day of its session.
The Senate passed House Bill 5229 Wednesday morning, which sets ad restrictions for colleges and requires a study on prediction markets. Earlier this week, state legislators also passed Senate Bill 296, which criminalizes rigging of in-state bets.
Also this week, US Sen. Richard Blumenthal from Connecticut, a strong proponent of reining in the sports betting industry, spoke to students at Sacred Heart University, about the drawbacks of the industry. Blumenthal is a sponsor of several nationwide bills looking to limit advertising and limit prop bets.
Lamont will have 15 days to sign the bill once it hits his desk or it will become law without his signature.
Connecticut sports betting withdrawals unchanged
Language that would have made it illegal for any operator to allow a customer to cancel a withdrawal was stripped from the final bill.
Operators and their partners said it would be a burden to make such a change. Canceling a withdrawal also is not always a sign of problem gambling, Michael Ventre, senior manager of state government relations for FanDuel, said in written testimony on the bill.
“Players who request withdrawals aren’t inherently engaging in problematic gambling behavior, yet this bill would treat them similarly to self-excluded individuals — despite no evidence of concerning conduct,” Ventre said. “From a consumer choice perspective, we believe players should maintain control over their own funds and financial decisions.”
Along with restricting advertisements on college campuses, operators must also maintain a customer service number instead of only offering online chat options.
Connecticut prediction markets study
The bill also sets up a study on the effects of prediction markets in Connecticut. It directs the Commissioner of Consumer Protection to work with the attorney general, Connecticut Lottery Corporation and the state’s two tribes to look into how prediction markets affect residents of the state.
The study, due February 2027, will look at multiple topics:
- The use of prediction markets by residents under 21
- Advertisements to those under 21
- Prediction market effects on problem gambling
- How the platforms affect revenue generated by gambling licensees
- How they might affect tax revenue or other payments to the state
In April, the Commodity Futures Trading Commission sued Connecticut, along with Arizona and Illinois, looking to reaffirm its status regulating prediction markets. Previously, Connecticut issued cease-and-desist orders to Kalshi, Crypto.com and Robinhood to stop running unlicensed sports betting. Kalshi, in turn, sued Connecticut to protect its right to operate.
Strengthening sports betting integrity rules
SB 296 also looks to tighten the state’s sports betting protections, this time in regards to integrity. The bill expands the definition of the crime of cheating to include rigging of sports betting.
Sports betting was not legal in Connecticut when the initial law passed in 1998.
The language extends the penalties of cheating at casino games, lottery drawings, parimutuel event wagering to also include match fixing, collusion and disclosure of confidential information for advantages related to sports betting.
The felony offense is punishable by up to five years in prison, a $5,000 fine or both.
Both chambers passed the bill unanimously.
Sacred Heart sports betting discussion
Blumenthal’s discussion at Sacred Heart came as the university released a new poll showing many between the ages of 18 to 34 report negative effects tied to sports betting. Those findings include:
- 37% said sport betting had a negative effect on their personal relationships.
- 45% said they knew someone who was negatively affected by sports betting.
Blumenthal said young people are not fully aware of the negative potentials.
“My advice to everyone especially young people is to learn more about the industry and how their technology, their tactics are designed to exploit weaknesses,” he said, per News 12. “And in literally in seconds they can promote and pitch another bet especially if people are losing.
“They don’t want more bets from winners, they want to promote bets to people who are losing.”
