Connecticut approves third-party background checks for gaming employee licenses

On April 8, 2025, the Connecticut State Legislature introduced Senate Bill 1237, a significant piece of legislation aimed at reforming the licensing process for employees in the gaming and lottery sectors. The bill proposes to streamline the criminal background check requirements for applicants seeking key employee licenses, live game employee licenses, and lottery sales agent licenses.

Under the current law, applicants must undergo a criminal history records check. Senate Bill 1237 seeks to replace this requirement with the option for applicants to submit a third-party criminal background check. This check must include a comprehensive multistate and multijurisdictional criminal record locator, ensuring thorough vetting while potentially expediting the licensing process. The bill stipulates that these checks must be conducted by accredited consumer reporting agencies that comply with the federal Fair Credit Reporting Act, thereby maintaining a standard of reliability and security.

In addition to the changes in background checks, the bill also revises advertising regulations for gaming entities. It prohibits promotional materials from depicting individuals under the age of 21, with specific exceptions for professional and collegiate athletes. Furthermore, the bill restricts marketing efforts aimed at younger audiences, particularly in relation to online lottery sales and fantasy contests, reinforcing the state's commitment to responsible gaming practices.

The introduction of Senate Bill 1237 has sparked discussions among lawmakers and stakeholders. Proponents argue that the bill will modernize the licensing process, making it more efficient and accessible, which could enhance the state's gaming industry. However, some critics express concerns about the adequacy of third-party checks, fearing that they may not be as thorough as state-administered background checks.

The implications of this bill extend beyond administrative efficiency; they touch on broader social issues, including the protection of vulnerable populations from gambling-related harms. By tightening advertising regulations, the bill aims to mitigate the risks of underage gambling, a growing concern in the digital age.

As the legislative process unfolds, the future of Senate Bill 1237 remains uncertain. If passed, it could set a precedent for how states manage gaming regulations and employee licensing, potentially influencing similar reforms in other jurisdictions. The bill's progress will be closely monitored by industry experts and advocacy groups alike, as its outcomes could reshape the landscape of gaming in Connecticut and beyond.