Article By Stephen Crystal – Founder & CEO, SCCG – SCHEDULE A MEETING!
A Line in the Sand: Montana Redefines Sweepstakes Gambling
On May 12, 2025, Montana became the first state this year to sign an anti-sweepstakes bill into law—marking a turning point in the ongoing national debate around sweepstakes-style promotional gaming. Senate Bill 555, signed by Governor Greg Gianforte, reclassifies various online promotional game formats as illegal gambling, even without explicitly naming sweepstakes casinos in its text.
The Social and Promotional Games Association (SPGA), a trade group representing many of the industry’s largest operators, wasted no time in publicly condemning the bill. Their concern? That the law’s language is not only overly broad but could be used to criminalize free-to-play games and widely accepted digital rewards programs that operate under established promotional guidelines.
Parsing the Law: What SB555 Actually Says
The bill modifies Montana’s gambling statutes by expanding the definition of internet gambling. It now explicitly bans “online casinos, by whatever name known,” and includes any platform that:
- Transmits or receives gambling information,
- Allows consumers to place a bet using any form of currency, and
- Offers payouts in any form of currency.
This carefully worded—but arguably vague—definition effectively captures the operational model of sweepstakes casinos that use dual-currency systems like Gold Coins and Sweepstakes Coins. While the bill never uses the word “sweepstakes,” the implication is unmistakable: these platforms are now considered illegal gambling entities in Montana.
Industry Response: A Broadside from the SPGA
The SPGA’s statement was direct: SB555 is an “overreach” that ignores the legal and operational distinctions between promotional sweepstakes platforms and real-money gambling. The association fears the language could also extend beyond the intended target and affect consumer loyalty programs or gamified rewards platforms like Microsoft Rewards or airline mileage schemes.
In making their case, the SPGA draws a parallel to Louisiana, where a similar bill is under review. There, lawmakers have been more careful to clarify that promotions from companies like McDonald’s, Starbucks, or Marriott aren’t included. The Montana bill makes no such distinction, leaving it to future legal interpretation—and potentially, litigation—to decide where the line is drawn.
More Than Montana: A Broader Shift in Attitudes
While Montana may be the first to cross the finish line in 2025, it’s far from alone. More than a dozen states have introduced legislation this year aimed at sweepstakes-style gaming. The difference in Montana is that lawmakers have now taken a definitive stance—reclassifying promotional casino platforms as illegal gambling rather than seeking a new regulatory framework.
This raises the stakes for the industry as a whole. The strategy of pushing for regulatory legitimacy—something newer associations like the Social Gaming Leadership Alliance (SGLA) seem more willing to embrace—may prove necessary as traditional legal defenses begin to fall flat.
What’s Next for Sweepstakes Gaming?
October 1, 2025, is the date SB555 officially takes effect. Between now and then, operators will need to evaluate their compliance strategies, legal risks, and market priorities. Some may choose to exit Montana entirely, while others may wait to see how aggressively enforcement is pursued.
The SPGA has made its position clear: it will oppose laws like SB555 that reclassify sweepstakes games without nuance. But that position may be increasingly difficult to sustain as states demand greater clarity and accountability from platforms that look and feel like online casinos to the average user.
The bigger question is whether this moment serves as a wake-up call for industry self-regulation—or a harbinger of wider crackdowns to come.
