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After months of debates, proposals, and cease-and-desist letters, Montana has taken the bold step of officially banning sweepstakes gaming. This landmark decision positions Montana as the first state in the nation to implement such a comprehensive ban on the vertical.
On Friday, Governor Greg Gianforta signed SB 555 into law following its swift approval in both legislative chambers. The law will go into effect on October 1, 2025, so sweepstakes operators have around four months to cease all operations in the state.
Introduced by Sen. Vince Ricci, the legislation amends several sections of the Sen. Vince Ricci to clarify decisions, prohibitions, and penalties. A major change is the expansion of the definition of “internet gambling” to include “online casinos, by whatever name known, which constitute internet gambling and therefore 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,” the law reads.
The “any form of currency” phrase is important here, as it prevents social casinos from offering games using the dual-currency system, where worthless Gold Coins can be bought with Sweeps Coins given as a bonus. Sweeps Coins can then be exchanged for real money, basically bypassing gaming regulations.
Violating the new law will be treated as a felony, and guilty parties could face up to 10 years in prison.
SPGA Calls Law ‘Reckless’
Operators and industry players have slammed the plan, calling it reckless. One of the major voices is VGW, the company behind popular names like Chumba Casino and Global Poker, and a founding member of the Social Gaming Leadership Alliance (SGLA), a new trade group for social gaming operators.
The first trade group, the Social and Promotional Games Association (SPGA), has also criticized the decision. In a statement to SBC Americas last Friday (May 23), the coalition called the new legislation “vague and sweeping.”
“Even platforms with no purchase required and robust consumer safeguards could now face criminal penalties,” the SPGA warned, noting how free-to-play promotions from retailers and other businesses could now fall under the expanded definition of sweeps.
“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans. It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”
More States Might Follow
Montana’s groundbreaking decision to ban sweepstakes could pave the way for other states to consider similar legislation. While Montana is the first to see such a ban implemented, several states have attempted or are currently working on proposals to restrict sweepstakes operations.
Mississippi looked like it would become the first state to ban the vertical, but its proposed ban fell short when it was combined with the contentious issue of legalizing online sports betting. Similarly, attempts in states like Florida, Maryland, and Arkansas have not succeeded in passing their respective sweepstakes prohibition bills.
However, the momentum is still building in various states, with New York, New Jersey, and Connecticut actively pursuing anti-sweepstakes legislation. The Louisiana Senate has already passed a proposed ban, with the bill now heading to the Senate ahead of the end of the legislative session on June 12.
Source: SBC Americas
