Montana has become the first state in the country to officially ban sweepstakes gambling.
The legislature passed SB555, which amended the state’s current gaming laws. As a result, sweepstakes casinos are illegal in the state. Legislators from both chambers approved the proposal, and Gov. Greg Gianforte signed it last week.
The bill bans any “online casinos, by whatever name known.” The language includes any “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 move comes as other states across the country have made efforts to ban the platforms. Sweeps casinos give players the option to play with a free, virtual currency. Then, those users can purchase additional “sweeps coins” as a bonus. Players can redeem these tokens for cash or other prizes.
Industry Says Law IS Vague
Critics have argued that the platforms are merely a means to circumvent gaming laws. They enable users to gamble with virtual currency, without facing regulations that protect consumers.
The sweepstakes companies argue that users can play for free. Users don’t need to make additional purchases. Thus, they create a vital difference between them and other online casinos.
That hasn’t deterred some legislators and now Montana users face some tough punishment for accessing the sites. The law outlines felony charges and up to 10 years in prison for violations.
Some operators had already exited the market before the bill was passed. The Social and Promotional Games Association (SPGA) condemned the bill and noted that the proposal lumped free-to-play gaming in with real-money online gambling.
The group also noted that other online brands that offer points and other prizes could also be banned because of the bill’s vague language.
“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans,” the group said. “It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.
“The SPGA urges lawmakers nationwide to reject vague prohibition and instead protect consumer choice through smart, modern frameworks, if action is even needed at all.
Several other states have made efforts to make the platforms illegal. Efforts in Florida and Mississippi came up short. The industry has faced lawsuits in California, and Ryan Seacrest has also been included in a suit for promoting Chumba Casino.
