Connecticut Gov. Ned Lamont has signed two bills that require CT sports betting operators to offer a toll-free support line and adds betting provisions under the state’s cheating laws.
Lamont signed HB 5529 last week and SB 296 on Tuesday, a pair of bills that set new rules for Connecticut sports betting advertising, consumer protection and wagers on collegiate athletics. The Senate passed the bills earlier this month.
The new rules come at a time when US Sen. Richard Blumenthal from Connecticut continues to rally for strong guardrails on the industry nationwide. Meanwhile, a key proponent in initial Connecticut sports betting passage, Rep. Maria Horn, has concerns with the market.
New rules for CT sports betting
SB 296 tightens the rules in terms of integrity. It expands the definition of the crime of cheating to include the rigging of sports betting. Sports betting was not legal when the cheating law first passed in 1998.
The new law introduces match fixing, collusion and the disclosure of confidential information for advantages related to sports betting. It also now includes casino games, lottery drawings and parimutuel event wagering.
The felony offense carries a prison sentence of up to five years in prison, a $5,000 fine, or both. The law is effective Oct. 1.
Sports betting ad restrictions
HB 5529 sets new ad restrictions on college campuses. It also requires operators to offer a customer service number, not just online chat options.
Sportsbooks must have the toll-free line operational by July 1.
Initially, the ban included language that would have prohibited operators to allow a customer to cancel a withdrawal. That measure was stripped from 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,” Michael Ventre, FanDuel senior manager of state government relations, wrote in testimony. “From a consumer choice perspective, we believe players should maintain control over their own funds and financial decisions.”
Prediction market study approved
The House bill also requires the Commissioner of Consumer Protection to work with attorney general, Connecticut Lottery Corporation and the two tribes to study the effects of prediction markets on consumers in the state.
The study, due February 2027, will hit on multiple topics:
- The use of prediction markets by residents under 21.
- Prediction market 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.
Connecticut is one of several states the Commodity Futures Trading Commission sued in April as the federal agency looks to reaffirm its status of regulating prediction markets. Previously, Connecticut issued cease-and-desist letters to Kalshi, Crypto.com and Robinhood to stop unlicensed sport betting.
Kalshi sued Connecticut in response.
CT lawmakers carry sports betting opinions
Blumenthal has sponsored multiple bills looking to strengthen the nation’s responsible gambling measures for sports betting. He also recently spoke to students at Sacred Heart University, which also recently released a poll on the negative effects of sports betting.
“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,” Blumenthal 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.”
Meanwhile, Horn recently told local media that she’s not sure the sports betting law was in the best interest of the state.
“I am concerned,” Horn said recently, per CT Insider. “I’m concerned about what it’s doing to sports, I’m concerned about young people betting, I’m concerned about the increasing blurring between this and prediction markets.”
