New Law Makes Montana First State to Prohibit Sweepstakes Games
Montana has made history by becoming the first US state to ban sweepstakes games within its borders.
LISTEN TO THIS ARTICLE:On Friday, May 23, 2025, Governor Greg Gianforte signed Senate Bill 555 into law, effectively prohibiting all forms of online gambling, including sweepstakes.
SB 555 was introduced in late March to specifically outlaw "internet gaming." The bill defines the act as any online platform, website, or app that transmits or receives gambling information, allows users to wager using 'any form of currency', and makes payouts in any form of currency.
While the bill does not directly reference sweepstakes, its focus on banning dual-currency gambling impacts the sweepstakes industry. Several sweepstakes platforms have been offering casino games to Montana residents using virtual currency, which has largely evaded state gambling laws until now.
The law classifies violations as felonies, with punishments of up to $50,000 in fines and 10 years of imprisonment.
SB 555's legislative journey was completed in under two months from introduction to signing. It was first referred to the Business, Labor and Economic Affairs Committee, which approved it before sending it to the Senate floor for a successful April vote.
The bill then moved to the House, where it cleared the Business and Labor Committee and passed on the floor before heading to the governor's desk for signature.
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SPGA Slams Sweepstakes Ban
Opponents to the bill, especially the Social and Promotional Games Association (SPGA), representing sweepstakes and social casinos, have voiced concerns over the latest development.
The SPGA strongly condemns the enactment of Senate Bill 555, which makes Montana the first state to ban online sweepstakes-style games, without even using the word sweepstakes. This vague and sweeping law reclassifies legitimate, free-to-play promotional games as "internet gambling," ignoring the clear legal and operational distinctions between sweepstakes platforms and real-money online casinos. Under SB 555, even platforms with no purchase required and robust consumer safeguards could now face criminal penalties.
The group urges lawmakers nationwide to establish clear, modern regulations if intervention is necessary, rather than vague bans that could have unintended consequences for consumers.
While Montana was the first state to successfully enact legislation targeting sweepstakes, Washington and Idaho had already prohibited online casinos, including sweepstakes, under their gambling laws.
Similar measures have stalled in Arkansas, Florida, Mississippi, and Maryland have failed to advance. However, in New York, New Jersey, Connecticut, and Louisiana's legislatures, bills addressing dual-currency casinos are moving forward.
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