Montana Moves Closer to Banning Sweepstakes Social Casinos
Sweepstakes-style social casinos are facing increasing scrutiny across the United States, with Montana now taking the most aggressive stance yet. Lawmakers in the state have moved forward on a bill that classifies these platforms as essentially unregulated forms of gambling. While these social casinos often claim to operate on virtual currencies only, many of these digital coins can ultimately be converted into real-world cash through indirect methods—a key concern for regulators.
Governor Greg Gianforte now holds the fate of the proposed legislation, which seeks to outlaw sweepstakes social casinos entirely. The bill aims to prohibit any online casino that uses or pays out any type of currency. Only platforms that do not involve currency in any form—meaning no real-world payouts or bets—would be exempt and permitted to operate.
The legislation specifically states:
“The term includes online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited. This includes but is not limited to 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. Online casinos that do not allow the use of currency of any kind are not considered a gambling activity and therefore are permitted.”
Although the number of active players within Montana has reportedly declined, lawmakers are still pushing ahead. The passage of Senate Bill 555 would make Montana the first state to enact a formal ban on the sweepstakes casino model, targeting the way these platforms utilize sweepstakes-style gameplay to facilitate quasi-gambling activities.
More than just restricting operations, the bill introduces criminal liability. It makes it a felony offense to knowingly run an illegal online gambling platform within Montana, including operations channeled through offshore operators—whether those sites are licensed elsewhere or not.
Despite a potential ban in Montana, a broader national prohibition remains unlikely at this stage. Still, the sweepstakes casino industry faces mounting resistance. Critics argue these operators are sidestepping gambling regulations and tax obligations, while still competing against traditional gambling companies. This opposition is expected to grow, placing further pressure on the sector as it navigates increased regulatory oversight and potential legal challenges across other states.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com
