Governor Greg Gianforte of Montana has signed the bill seeking to ban sweepstakes casino operators in the state, making Montana the first-ever US state that officially prohibits sweepstakes casinos online. While Senate Bill 555 doesn't specifically state sweepstakes casinos, the bill seeks to ban casino operators that make use of dual currencies in gambling. Other states have introduced similar bills, but Montana is the very first state to sign it into law.

Montana has officially become the first state in the nation to outlaw online sweepstakes casinos, following the signing of Senate Bill 555 by Governor Greg Gianforte. The new legislation, which goes into effect on October 1, prohibits internet gambling platforms that use dual-currency models - commonly associated with sweepstakes-style online casinos.

While the bill does not explicitly mention "sweepstakes," it was crafted to target operators that allow users to place bets using one currency and redeem prizes in another - a hallmark of many online sweepstakes platforms. According to the bill's language, any online gambling operation that "knowingly transmits or receives gambling information" and "makes payouts of any form of currency" falls under the prohibition.

Strict penalties for violators

Under the new law, violators could face severe penalties, including felony charges, fines of as much as $50,000, and prison sentences of up to 10 years. The legislation underscores Montana's intent to draw a hard line against emerging forms of online gambling that operate in legal gray areas, especially those offering casino-style experiences under the guise of sweepstakes or promotional gaming.

The House and Senate in Montana both passed SB 555 in April, setting the stage for Governor Gianforte's signature this week. While several states have introduced similar legislation, Montana is the first to see such a bill successfully enacted.

Industry group denounces the bill's ambiguity

The Social and Promotional Games Association, a trade group representing sweepstakes operators, has sharply criticized the new law. In a statement, an SPGA spokesperson argued that the bill's broad and ambiguous language could have far-reaching consequences beyond its intended targets.

"Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans," the spokesperson said. "It's a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices."

The SPGA further warned that the vague phrasing might inadvertently criminalize free-to-play sweepstakes and other promotional contests that do not involve real-money gambling.

Broader legislative efforts struggle elsewhere

Montana's move comes as other states deal with how to regulate or prohibit online sweepstakes casinos. Earlier in the year, the Senate of Mississippi became the first legislative body to pass a bill aimed at banning such platforms. However, that legislation ultimately failed in a conference committee amid broader discussions about legalizing online sports betting.

Similarly, attempts to pass comparable bans in Florida, Arkansas, and Maryland also fell short. Despite the setbacks, several other states currently have active bills under consideration, reflecting growing concern over the legality and consumer protection issues surrounding online sweepstakes gambling.

Montana's new law may serve as a catalyst for other states considering action against sweepstakes casinos. As these platforms continue to gain popularity - often marketed as legal alternatives to traditional online gambling - state lawmakers face increasing pressure to define and regulate their operations.

The enactment of SB 555 marks a significant moment in the ongoing debate over how best to address the evolving landscape of online gambling. Whether other states follow Montana's lead remains to be seen, but the move has certainly reignited national attention on the legality and ethics of sweepstakes-based gaming.