Montana Sets Precedent with First U.S. Ban on Sweepstakes Gaming

online sweepstakes gambling, becoming the first state to implement a full ban on such platforms. Signed into law by Governor Greg Gianforte, Senate Bill 555 introduces sweeping restrictions on digital wagering, with enforcement beginning October 1. Though the legislation doesn’t name specific companies or platforms, its expansive definition of gambling has left many in the industry uneasy.

The law prohibits any entity—website, app, or digital platform—that “knowingly transmits or receives gambling information,” enables s to “place a bet or wager using any form of currency,” and provides payouts in any currency. Offenders face felony charges that could lead to up to 10 years in prison, fines reaching $50,000, or both—per violation.

Legislation Draws Fire for Overreach and Ambiguity

Industry stakeholders wasted no time voicing their concerns over the broad scope of the bill. The Social and Promotional Games Association (SPGA) warned that SB 555’s vague language could sweep in far more than its intended targets, potentially criminalizing everyday digital promotions and loyalty programs.

“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans,” said an SPGA spokesperson. “It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”

The new law directly affects sweepstakes-style operators, such as Chumba Casino and Luckyland Slots —both under parent company Virtual Gaming Worlds—which had already ceased operations in the state ahead of the bill’s enactment. These platforms typically use virtual currencies that can be purchased or earned and later redeemed for real cash rewards, putting them squarely within SB 555’s definition of prohibited activity.

However, digital games without real-world monetary payouts—such as purely social casino games—are exempt under the law.

Montana Moves Ahead While Others Stall

While Montana has surged ahead, efforts to regulate or restrict sweepstakes gambling have hit roadblocks in several other states. Legislative pushes in Florida, Maryland, Arkansas, and Mississippi all failed to materialize in 2025. In Mississippi, a proposed ban was attached to a broader sports betting initiative that ultimately didn’t .

Still, the national conversation around sweepstakes gambling is gaining traction. Pennsylvania has taken enforcement into its own hands, issuing cease-and-desist notices to 18 operators. Elsewhere, legislation is gaining ground. is quickly advancing in New York. Connecticut and New Jersey are also in the early stages of evaluating regulatory frameworks.

An SPGA representative highlighted the contrast between Montana and other states: “Montana’s lawmakers have taken a reckless step, ignoring the economic and consumer consequences, and diverging from states like Arkansas, Maryland, Mississippi, and Florida, which have all rejected similar bans in 2025.”

A Turning Point for the Sweepstakes Industry

Until now, sweepstakes gambling had largely weathered regulatory threats, often avoiding legislative bans at the state level. SB 555, however, marks a turning point—one that could prompt other jurisdictions to reconsider their hands-off approach.

Source:

“Daniel Wallach”, X.com, May 23, 2025