Montana became the first state to officially outlaw online sweepstakes casinos. Gov. Greg Gianforte signed Senate Bill 555, making Montana the first state to ban sweepstakes gaming.
Montana Senate Bill 555 Reclassifies Sweepstakes Casinos
SB 555 does not explicitly state “sweepstakes,” but it reclassifies free-to-play promotional games as “internet gambling.” The bill was written to ban operators that provide dual-currency gambling.
The measure has a provision that reads, “Internet gambling includes online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited.”
In addition, the definition of “internet gambling” in SB 555 includes online casinos and platforms that offer casino-style games “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.”
Sweepstakes Ban Goes Into Effect Oct. 1, 2025
Sweepstakes operators are not mentioned in the bill, but they still use their own form of currency such as Gold Coins and Sweeps Coins. Players are then able to redeem their virtual coins to win real cash or prizes.
The words “any form of currency” apply to virtual currencies as well. A few social casinos could be allowed to operate but only if the sites don’t utilize a dual-currency system.
Under SB 555, violations will be subject to a felony charge with a fine of up to $50,000 and up to 10 years in prison.
The ban goes into effect Oct. 1, 2025.
Other Anti-Sweeps Bills Have Failed
Several sweepstakes casino operators have already left the Montana market. Virtual Gaming Worlds (VGW), the parent company of Chumba Casino and Luckyland Slots, exited the state in February 2024.
Multiple state legislators introduced bills to prohibit sweeps gaming, but no others have passed.
In February, the Mississippi Senate became the first legislative chamber to pass a bill prohibiting sweepstakes casinos. But the legislation died in the conference committee because of a disagreement between House and Senate lawmakers over online sports betting expansion.
Other legislation in Arkansas, Florida, and Maryland also fell short.