A bill to clamp down on illegal gambling in Montana has passed through the Senate and will begin its journey through the House of Representatives.
SB555 was filed by Republican Senator Vince Ricci and passed its third reading on April 5th with a vote of 40 in favor, 8 opposed, and 2 absent. This followed successful passage on the second reading, as well as passage through the Business, Labor, and Economic Affairs Committee with unanimous support.
SB555 Would Draw Clearer Lines Around Illegal Gambling
The proposal seeks to amend existing Montana law to further define what constitutes illegal gambling, namely in the online sphere, including both domestic and offshore enterprises.
Currently, Big Sky Country has legal sports betting, tribal casinos, electronic gaming machines at bars and restaurants, and a state lottery. Traditional iGaming (online gambling) is outlawed, but, as in many other US states, the newer online sweepstakes format has existed in something of a gray area.
In fact, many popular sweepstakes operators already choose not to operate in Montana; Chumba, Pulsz, McLuck, WOW Vegas, and more exited Montana last year when state lawmakers were debating a proposal to outlaw the vertical. The sentiments from that bill, which never became a reality, have now been written into SB555, expanding the definition of “internet gambling” to include “online casinos” and:
“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.”
While sweepstakes casinos are not named specifically, the “any form of currency” phrase makes it pretty clear they would be unwelcome in MT. That said, “bet or wager” may not be the most watertight piece of terminology and could be open to interpretation.
It also seems pure social casinos would be exempt from any penalties:
“Online casinos that do not allow the use of currency of any kind are not considered a gambling activity and therefore are permitted.”
With the raft of anti-sweepstakes bills gaining prominence in the US, it will be interesting to see if any sweepstakes casinos do choose to convert to a pure social format – either in certain states or across the whole country.
Suggested Penalties and Fines
Section 3 of SB555 maintains that advertising or soliciting customers to participate in illegal gambling is a crime. Section 4 maintains fines of up to $50,000, imprisonment for up to 10 years, and felony status for the operation of an illegal gambling enterprise.
One amendment means that any revenue from fines would be redirected from the state general fund to the Montana Department of Justice, making sure funding goes to the body tasked with gambling regulation specifically.
Wave of Similar Sweepstakes Bills Reflects Broad Push
Any new bill must pass through both chambers of the state legislature before being signed off by the Governor, so we will now follow SB555’s journey through the House.
This is the 11th bill in the United States this year to grapple with the gray areas surrounding sweepstakes and/or offshore casinos, two formats experiencing rapid growth compared with the traditional gambling industry. We recently reported on the new bill gaining momentum in Louisiana, although it’s worth noting that the recent bill in Mississippi failed.
SweepsKings will keep you updated with the progress of each proposal, so stay tuned to stay informed.
Author: Joseph Allen
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