Montana became the first state to officially prohibit online sweepstakes casinos.
Gov. Greg Gianforte signed Senate Bill 555, making Montana the first state to ban sweepstakes casinos. However, the ban does not explicitly name sweepstakes.
Multiple state legislators introduced bills to prohibit sweepstakes casinos, but no others have passed.
Montana bans sweepstakes casinos
The Montana House and Senate passed SB 555 last month. This week, Gianforte signed the bill, which goes into effect Oct. 1.
While the language does not include the word “sweepstakes,” the bill was written to ban operators that provide dual-currency gambling.
“The term internet gambling includes online casinos, by whatever name known, which constitute internet gambling and there are prohibited. This includes but is not limited to any platform, website, or application that knowingly transmits or receives gambling information, allows consumers to place a bet or wager using any form of currency, and makes payouts of any form of currency.”
Violations will be subject to a felony charge with a fine of up to $50,000 and up to 10 years in prison.
Sweepstakes organization calls out bill
The Social and Promotional Games Association condemned the new law.
“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans,” said a spokesperson for SPGA. “It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”
The SPGA said the vague language also could include free-to-play sweepstakes platforms and operators.
Sweeps bills across the US
Earlier this year, the Mississippi Senate became the first legislative chamber to pass a bill prohibiting sweepstakes casinos. The legislation died in the conference committee after getting caught in an online sports betting expansion discussion.
Other legislation in Arkansas, Florida and Maryland also failed.
Several bills are still alive in legislatures across the country.
