Montana’s Anti-Sweepstakes Law Denounced by Industry Group as Excessive Government Overreach

The Social and Promotional Games Association (SPGA) has strongly criticized the enactment of Senate Bill 555 in Montana. Signed into law by Governor Greg Gianforte on May 12, this legislation marks the first anti-sweepstakes bill to be approved this year. The SPGA, a trade organization representing various sweepstakes casinos, opposes SB555 due to its “vague and sweeping” phrasing. Notably, the term “sweepstakes” does not appear in the bill at all, leading to concerns about its broad implications for the industry.

Key to the legislation is its amendment to the definition of “internet gambling,” which had been illegal in Montana since 2005. The amendment states that online casinos—regardless of their designation—are considered illegal under this new definition. This includes platforms that transmit or receive gambling information and allow consumers to place bets or wagers, effectively classifying most sweepstakes casinos as illegal gambling operations in the state. The SPGA argues that this law conflates legitimate promotional games with illegal gambling activities.

The association expresses concern that even free-to-play platforms without purchase requirements could face legal consequences under the new law. The example of Microsoft Rewards is cited, highlighting how promotional schemes rewarding consumers with points redeemable for prizes might also fall under the bill’s parameters. Though SB555 is set to take effect on October 1, its practical legal interpretation remains uncertain, particularly concerning non-casino promotions. In comparison, Louisiana’s Senate Bill 181 is advancing and its sponsor has reassured that it will not impact legitimate promotions like McDonald’s Monopoly or Starbucks rewards.

Ultimately, the SPGA’s grievance stems from Montana’s categorization of sweepstakes casinos as illegal gambling. The group’s future strategies may either resist this reclassification or advocate for regulatory frameworks. Meanwhile, the emergence of the SGLA—a new trade group—could also influence ongoing discussions with lawmakers in this evolving landscape.

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