Montana Leads the Way in Anti-Sweepstakes Crack Down
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Montana Leads the Way in Anti-Sweepstakes Crack Down

May 12th update – SB555 was signed into law by the Governor.

Montana could become the first state to sign an anti-sweepstakes bill into law in 2025.

montana house chambers

While over 10 US states had seen proposals introduced and debated (with three officially dying in Mississippi, Arkansas and Maryland), no state had managed to approve a bill in both legislative chambers.

That changes now that SB555 has succeeded via a single-bill pathway; initially filed in the Montana Senate by Sen. Vince Ricci, it returned from the House on March 23rd. Though there were a handful of votes against at varying stages, overall it received broad support from lawmakers.

Now, the bill awaits Governor Greg Gianforte’s signature or veto, though the latter seems unlikely considering the proposal received bipartisan support, and Gianforte has not expressed public opposition before now.

Many Sweepstakes Casinos Unaffected

Most sweepstakes casinos already choose not to offer their platforms in Montana, so this development is not as seismic as it could prove in other US states. That said, we’re still likely to see many operators withdraw from the Treasure State to avoid the penalties listed in the bill; Section 4 recommends fines of up to $50,000, jail time for up to 10 years, and felony status for illegal gambling enterprises.

Montana currently has legal sports betting, tribal casinos, electronic gaming machines at bars and restaurants, and a state lottery. Online casinos are illegal though, and SB555 will further shore up definitions of illegal gambling to include:

“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.”

New York – S5935 & A6745

Meanwhile, in New York anti-sweepstakes proposals are advancing via a companion bill process.

S5935 is currently awaiting a final floor vote in the state Senate; it was amended on the third reading on April 30th, and is now set for a vote by the full Senate chamber. The amendment clarified the definition of an ‘online sweepstakes game’, adding the word ‘cash’ to point specifically to sweepstakes casinos and their format. This is perhaps because concerns had been raised that this – and other similar bills – would affect sweepstakes competitions in general, such as those operated by McDonald’s or Starbucks that offer non-cash prizes.

The Social and Promotional Games Association (SPGA), a sweepstakes trade group, responded to news of the amendments with criticism:

The amendment clarifies that the New York State Gaming Commission, not the legislation itself, will determine what constitutes a ‘dual-currency system’ under the law.

By leaving the definition of a dual-currency system up to regulators, the amended bill simply punts the problem to the Gaming Commission. This ill-conceived pivot only deepens the risks to mobile game operators, marketing platforms, and loyalty systems by injecting even more ambiguity.

The statement from the SPGA went on to make a plea that lawmakers work with the sweepstakes industry to collaborate on future proposals, rather than attempting to write bills without any external input.

NY’s companion bill, A6745 received the same amendments and continues its progress through the State Assembly. It’s midway through the legislative process, but still has several steps to go before a full vote in the Assembly – supporting lawmakers will be hoping to wrap things up with both bills before the end of the session on 12th June.

Louisiana – SB181

Louisiana’s SB181 seeks to amend current state gambling law and is now moving through the House after passing the Senate unanimously. It provides a particularly clear definition of sweepstakes casinos and sets fines of up to $100,000, along with a penalty of imprisonment for up to five years. It also includes punishments for not just the operator, but geolocation providers, game developers, game suppliers, platform providers, and affiliates.

On top of that, SB181 would give the Louisiana Gaming Control Board (LGCB) and the State Police powers to bring:

“Civil enforcement actions to enjoin the unlawful conduct, requiring the taking down of illegal gambling websites and illegal gambling mobile applications, and imposing civil penalties.”

This would be a significant tool in the state’s arsenal, with regulators often being powerless to stop illegal operations beyond issuing cease and desist letters.

Connecticut – SB1235

Connecticut’s SB1235, which we reported on back in March, continues its passage through the state Senate. Most recently it was unanimously approved by the Judiciary Committee 37-0.

The legislative session in Connecticut runs until June 4th, meaning lawmakers have just under a month to push SB1235 (or a counterpart) through both chambers. The current wording would outlaw any unlicensed company that “facilitates participation in any real or simulated online casino gaming or sports wagering”. It also looks to update state law on lottery ticket sales and gambling advertising.

A Turbulent Year for Sweepstakes Gaming

With most state legislative sessions soon winding down for 2025, we’re edging closer to the first anti-sweepstakes laws becoming reality.

While it won’t spell the end for sweepstakes, it marks a clear turning point: after years of rapid growth, states are finally moving to grapple with a vertical that’s seen a sharp rise over the last decade. Unfortunately, it’s bound to bring with it a limiting of options for players who enjoy the format.

Originally published: May 1st 2025

Joseph Allen

Author: Joseph Allen

Updated:

Joseph is an experienced news writer specializing in gambling legislation. His talent lies in breaking down intricate topics into accessible language that keeps readers informed. He holds a Master's in journalism and brings you the latest updates and analyses of complex industry regulations and trends. When he's not covering breaking news, you’ll likely find him diving into new slot demos, with a particular taste for progressive bonus mechanics.
Joseph is an experienced news writer specializing in gambling legislation. His talent lies in breaking down intricate topics into accessible language that keeps readers informed. He holds a Master's in journalism and brings you the latest updates and analyses of complex industry regulations and trends. When he's not covering breaking news, you’ll likely find him diving into new slot demos, with a particular taste for progressive bonus mechanics.