The Social and Promotional Games Association (SPGA) has strongly condemned the signing into law of Senate Bill 555 in Montana. The milestone proposal was signed off by State Governor Greg Gianforte on May 12, making it the sole anti-sweeps bill to complete its journey into law so far this year.
The SPGA acts as a trade group representing various sweepstakes casinos and advocating on behalf of the industry as a whole; it has taken issue with the “vague and sweeping” nature of SB555, pointing out that ‘sweepstakes’ isn’t even used within the bill’s wording.
SB555’s Crucial Wording
Below is the main amendment that SB555 makes to state law. Essentially, it seeks to widen the definition of ‘internet gambling’, which was previously designated as illegal in Montana in 2005:
“(b) (i) The term includes 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.”
As we can see the above amendment does not use the word ‘sweepstakes’, yet it does seem to encompass the sweepstakes casino system, where currencies such as Sweepstakes Coins can be redeemed for real money. It now reclassifies such formats as illegal gambling in Big Sky Country.
This is from the SPGA:
“This vague and sweeping law reclassifies legitimate, free-to-play promotional games as ‘internet gambling,’ ignoring the clear legal and operational distinctions between sweepstakes platforms and real-money online casinos. Under SB 555, even platforms with no purchase required and robust consumer safeguards could now face criminal penalties.”
The statement goes on to cite an example in Microsoft Rewards, pointing out that promotional schemes like this could also be affected. In such schemes, consumers can build up points through purchases and then redeem the points for prizes, including cash giveaways.
Context From Louisiana?
We expect SB555 to become effective on October 1 this year, but exactly how it will bear out as a legal interpretation, especially in relation to non-casino promotions, is still hard to say.
Perhaps it’s worth looking to another state, Louisiana, where a similar bill (SB181) is making solid progress. Having passed the Senate unanimously, it’s now advancing through the House, and bill sponsor Senator Adam Bass addressed the issue of non-casino promotions getting caught out by wording in the debate:
“Regardless of what you’ve heard, this bill does not affect legitimate promotions, such as McDonald’s Monopoly, Starbucks, or Marriott rewards. This bill narrowly defines sweepstakes casinos. We know the gaming control board and attorney general have no interest in going after Starbucks or Marriott or McDonald’s and are solely focused on putting an end to sweepstakes casinos in this state.”
But returning to the SPGA’s condemnation of SB555, the disappointment ultimately centres around the fact that Montana has effectively classified sweepstakes casinos as a form of illegal gambling. For now, it seems the group simply remains opposed to any legal redefinition in this manner, and it’s understandable why.
But whether that strategy holds or gives way to a more conciliatory approach, such as pushing for regulation, remains to be seen. The recent launch of the SGLA, a second trade group, adds another layer to the debate, and how it chooses to engage with lawmakers will certainly be interesting to watch.
Author: Joseph Allen
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