It’s official – Montana Governor Greg Gianforte (pictured right) signed off on Senate Bill 555 on May 12, making it the first of this year’s anti-sweepstakes proposals to become law.
While it doesn’t mention sweepstakes casinos by name, its language effectively prohibits the model. Of course, this is a state-level law that only affects Montana, but it will likely mean the end of the sweepstakes casino vertical in Big Sky Country, potentially pushing players there who use these services towards illegal offshore casinos.
The bill, introduced by Republican Senator Vince Ricci (pictured left), amends various gambling-related sections of the Montana Code Annotated (MCA). It passed through the Senate, then the House of Representatives, including their respective committees, with minimal edits.
When Will It Come Into Effect?
SB555 didn’t specify a start date, but according to the MCA:
“Every statute adopted after January 1, 1981, takes effect on the first day of October following its passage and approval unless a different time is prescribed in the enacting legislation.”
Therefore, we can assume SB555 will come into effect on October 1 this year.
Content of the Montana Anti-Sweepstakes Gaming Bill
On the definition of “Internet gambling”, SB555 proposed this amendment:
“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.”
Crucially, the reference to bets or wagers made using “any form of currency” will be interpreted as encompassing online sweepstakes casinos and their dual-currency model – a system that has, until now, allowed these platforms to operate without any true opposition. SB555 appears to close that loophole, directly targeting the structure that sweepstakes operators rely on to stay compliant.
Interestingly, the bill seems to make provisions for pure social casinos, which function in much the same way as sweepstakes casinos, but without the possibility of any kind of ‘valuable’ currency or cash redemption.
“Online casinos that do not allow the use of currency of any kind are not considered a gambling activity and therefore are permitted.”
Later on, the bill proposed that fines collected for gambling violations in Montana should go to benefit the “operating budget of the department of justice” rather than the state general fund, as was previously the case.
As well as operating an illegal gambling venture, the bill states that solicitation for illegal gambling can be charged as either a misdemeanor or a felony, giving prosecutors more flexibility. This change targets advertisers, affiliate marketers, and anyone promoting illegal gambling sites, including sweepstakes casinos themselves.
The bill also makes it clear that even offshore operators are subject to felony criminal liability under this law. This is relevant because many sweepstakes casinos operate from outside the United States; whether this can be effectively enforced is another matter.
Finally, under the law, penalties for both operators and solicitors of illegal gambling enterprises in Montana can reach up to $50,000 and imprisonment for up to 10 years.
Who Will Montana’s SB555 Passage Affect?
Many popular sweepstakes casinos have already left Montana. Big names like Chumba, McLuck, and WOW Vegas withdrew in 2024, but other platforms including Stake.us, Fortune Coins, and Zula still remain operational here.
These operators will likely withdraw from the state before October 1 if they don’t want to fall foul of the new amendments detailed above, so, ultimately, Montana residents will have no options if they wish to play at sweepstakes casinos going forward. However, as we saw, pure social casinos will still be permitted. Maybe some sweeps casinos could switch to a social model in Montana? We have seen sites make exceptions in this way before for Idaho players.
Montana residents who are players at sweepstakes casinos should look out for new announcements from their platform of choice, or they can contact customer support for further information on what will happen over the coming months.
iGaming in general is outlawed in Montana, and many of its residents were using sweepstakes casinos as a legal way to gamble online. However, with the new change in law and imminent closure of platforms in Big Sky Country, many residents will likely move over to shady offshore casinos.
This is one of the clear negative consequences of banning sweepstakes casinos outright, and why associations like the Social and Promotional Games Association (SPGA) have been campaigning for lawmakers to work with the sweeps industry and introduce legislation that creates a pathway to regulation instead. You can read SPGA’s criticism of MT’s new bill here.
That being said, lawmakers in Montana have opted to draw a clear line in the sand for now, outlawing the sweeps format, despite the possible consequences. Other states such as Connecticut, New Jersey, Nevada, Louisiana, and New York are still considering their own versions of an anti-sweepstakes proposal, so stay tuned to SweepsKings for updates on these bills.
Author: Joseph Allen
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