Montana Governor Greg Gianforte officially signed Senate Bill 555 on May 12, marking it as the first anti-sweepstakes law to pass this year. While the bill does not explicitly name sweepstakes casinos, its provisions effectively put a halt to their operations in the state.
This legislation is expected to eliminate the sweepstakes casino industry in Montana, potentially pushing players toward illegal offshore casinos. Senate Bill 555, introduced by Republican Senator Vince Ricci, modifies several sections of the Montana Code Annotated (MCA) related to gambling.
The bill navigated through both the Senate and House with minimal revisions. Though it does not specify an exact start date, according to established law, it is anticipated to take effect on October 1, 2023.
One significant aspect of SB555 is its new definition of “Internet gambling,” which now includes online casinos operated under any name. This change directly impacts online sweepstakes casinos, particularly targeting the dual-currency model that had previously allowed them to operate legally.
Interestingly, the bill notes that purely social casinos, which do not involve any form of cash or valuable currency, will remain permissible. The legislation also stipulates that fines for gambling violations will benefit the department of justice rather than the state’s general fund.
Soliciting illegal gambling can now result in either misdemeanor or felony charges, providing prosecutors with greater flexibility to target advertisements and promoters of illegal gambling sites, including sweepstakes casinos. Furthermore, even offshore operators are at risk of felony charges under this law.
The impact of SB555 is significant for Montana residents, as many popular sweepstakes casinos have already exited the state. While some platforms may consider transitioning to a social model, most residents will likely be left without options for legal online gambling.
This shift raises concerns about residents turning to unregulated offshore casinos, which poses risks associated with illegal gambling. Associations like the Social and Promotional Games Association (SPGA) are urging lawmakers to collaborate with the sweepstakes industry to find a balanced solution through regulation.
For now, Montana has implemented a strict approach to outlaw sweepstakes formats entirely, and similar legislative efforts are ongoing in other states.