Montana has become the first U.S. state to outlaw sweepstakes casinos under Senate Bill 555, effective October 1
Roughly two weeks ago, we announced Montana was just a quick governor’s signature away from placing sweepstakes social casinos outside the law.
On Friday, Governor Greg Gianforte, the state’s 25th governor, signed Senate Bill 555 into law, clearly showing the Treasure State’s stance in the ongoing national debate over online gaming by officially banning sweepstakes gambling.
The law goes into effect on October 1, making Montana the first state to implement such a ban.
Harsh Felony Charges, Fines, Time Behind Bars for Violators
Sweepstakes casinos typically operate by letting users play with free coins while also offering the option to purchase more using real money or cryptocurrency.
Players can then redeem winnings for cash or prizes. While these sites market themselves as legal promotional games, critics argue they function like traditional online casinos but without proper oversight.
While SB 555 does not refer to sweepstakes gambling by its name, it effectively shuts down the controversial gambling model by banning all websites, apps, or platforms that “knowingly” transmit or receive gambling information, enable users to bet, wager, or make payouts using “any form of currency.”
Operators that fail to comply could face felony charges, a fine of up to $50,000, and as much as a decade behind bars for each offense.
Virtual Gaming Worlds, a company that operates well-known sweepstakes sites Chumba Casino and Luckyland Slots, has already pulled out of the Montana market as a result of the new bill being inked.
SPGA Condemns the Bill
The Social and Promotional Games Association (SPGA), an industry advocacy group, has condemned the bill.
“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans,” a spokesperson said, further calling the decision “a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices”.
The SPGA has also raised concerns over similar legislation in other states, notably Louisiana’s SB 181 introduced by Senator Adam Bass with the purpose of enhancing regulations regarding “illegal gambling by computer” by defining “illegal gambling more comprehensively, particularly focusing on activities that utilize a dual-currency system of payment, which allows players to exchange currency for prizes or cash equivalents.”
While a few states like Mississippi, Florida, Arkansas, and Maryland have attempted but failed to pass bans, the conversation around regulating sweepstakes gambling continues in places like Connecticut, Ohio, New Jersey, and New York.
Montana’s decision could likely convince other states to revisit the issue and follow suit amid the ongoing struggles to manage the fast-growing online gambling world.
