Montana Passes Groundbreaking Ban on Sweepstakes Gambling
Montana has become the first state in the United States to impose an outright ban on online sweepstakes gambling, marking a pivotal moment in digital gaming regulation. Governor Greg Gianforte signed Senate Bill 555 into law on Friday, with enforcement scheduled to begin on October 1. The new statute does not explicitly name sweepstakes casinos but casts a wide legislative net over any digital platform involved in betting activity.
The bill prohibits any service, application, or online site from transmitting or receiving gambling-related data, allowing users to place bets in any currency, or issuing payouts in any currency format. Violators of this law will now face felony charges, with penalties reaching up to a decade of imprisonment, a $50,000 fine per offense, or both.
Concerns Raised Over Legislative Scope
The Social and Promotional Games Association (SPGA) has voiced strong opposition to the new law, emphasizing its far-reaching and ambiguous language. According to the organization, the bill may unintentionally impact a wide array of legitimate promotional practices commonly used by industries such as hospitality, travel, and technology.
“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans,” said an SPGA spokesperson. “It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”
The legislation’s reference to “any form of currency” puts sweepstakes operators directly in its crosshairs, particularly platforms that use virtual tokens—purchased or earned—for the chance to win real cash. In anticipation of the bill’s passage, companies such as Virtual Gaming Worlds, which operates Chumba Casino and Luckyland Slots, had already ceased their services in the state.
Platforms operating as purely social casinos with no cash-out functionality will not be subject to enforcement under the new law.
National Reactions and Comparisons
Montana’s decision arrives as various U.S. states weigh their own responses to the growing sweepstakes gaming model. While some states have taken steps toward regulation or enforcement, progress has been inconsistent. For instance, Mississippi’s proposal failed after it became entangled with unrelated sports betting legislation, while efforts in Florida, Maryland, and Arkansas have similarly faltered.
Still, other jurisdictions have recently accelerated their efforts. In April, Louisiana’s Senate passed SB 181, and New York’s legislative proposal S5935 continues to move forward. Additional reviews are underway in Connecticut and New Jersey. Meanwhile, Pennsylvania has already sent cease-and-desist notices to nearly 20 sweepstakes operators, signaling a more aggressive regulatory stance.
A Turning Point for the Sweepstakes Industry
Before Montana’s legislative breakthrough, sweepstakes gambling platforms had largely fended off regulatory challenges. Proposals aimed at curbing their operations were frequently stalled or defeated in state legislatures. With SB 555 now on the books, that trend may be reversing.
“Montana’s lawmakers have taken a reckless step, ignoring the economic and consumer consequences, and diverging from states like Arkansas, Maryland, Mississippi, and Florida, which have all rejected similar bans in 2025,” the SPGA spokesperson said.
As Montana moves forward with its enforcement plans, the bill’s passage could influence other states to reconsider the legal standing of online sweepstakes gambling, setting the stage for further scrutiny and possible replication of similar laws elsewhere.
Source:
Montana Breaks New Ground with Online Sweepstakes Gambling Ban, lcb.org, May 26, 2025.