Montana Set to Enact First U.S. Sweepstakes Casino Ban

Montana is on the cusp of becoming the first U.S. state to enact a law directly prohibiting sweepstakes casino operations. Senate Bill 555 (SB555), which aims to redefine and restrict illegal internet gambling in the state, has been approved by both chambers of the Montana Legislature and now requires only Governor Greg Gianforte’s signature to become law.

The legislation modifies existing gambling regulations by introducing more explicit language around online gambling practices. The newly added provision states that internet gambling “includes online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited.” The text extends to include any website, platform, 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.”

Focus on Sweepstakes Currency Model

This broad framing appears to directly challenge the operational model used by sweepstakes casinos. Typically, these platforms rely on a dual-currency system. s purchase Gold Coins, a virtual currency used for recreational play. Alongside these purchases, players receive bonus credits—known as Sweeps Coins—that can be used to play casino-style games and redeemed for cash prizes.

ers of the bill argue that this structure exploits legal gray areas. SB555 seems designed to eliminate that ambiguity by targeting any gambling model involving the exchange or payout of “any form of currency.” While the bill clearly seeks to capture Sweeps Coins within its reach, the definition of “currency” remains somewhat open to interpretation—particularly in the case of Gold Coins, which have no monetary value and cannot be withdrawn.

This vagueness has raised questions about whether apps that operate solely as social casinos, even those offering coin purchases to enhance gameplay, might be inadvertently affected. Such uncertainty leaves room for debate on the legal implications for purely freemium models.

Market Response and Broader Legislative Landscape

Even before the bill made it through the legislative process, some operators took preemptive action. VGW, which operates leading brands such as Chumba Casino and Luckyland Slots, has already exited the Montana market. This move signals the potential impact the bill could have on the sweepstakes gaming industry should it become law.

While Montana may be the first to enact such a statute, it is not the only state scrutinizing sweepstakes-style online gambling. its version of a restriction bill just this week.

Legislative Momentum and Bill Progress

SB555 was introduced by Republican Senator Vince Ricci and steadily advanced through both chambers. The bill ed the Senate with a 40-8 vote and moved swiftly through the House, where it received final approval on April 23, 2025, with a vote of 88-11. It was formally returned from enrolling to the Senate on April 28 and is now pending gubernatorial action.

If Governor Gianforte signs the bill, Montana will set a precedent as the first state to legally classify sweepstakes casino operations under its prohibited internet gambling laws. The decision could prompt other states to follow suit, ushering in a new wave of regulation for a rapidly expanding digital gambling niche.

Source:

Montana a signature away from first US sweeps ban, sbcamericas.com, May 1, 2025