Montana becomes first state to criminalize sweepstakes casinos

Senate Bill 555 (SB555), signed by Governor Greg Gianforte, will take effect on October 1 and marks a dramatic shift in the nationwide conversation around the legality of sweepstakes gaming.

What makes this move so significant isn’t just that Montana acted first, but how broadly and ambiguously it chose to legislate.

What the law says

Interestingly, SB555 doesn’t explicitly mention “sweepstakes” casinos. Instead, it bans “internet gambling” across all platforms and formats that involve betting or payouts using “any form of currency.” 

This phrasing directly targets the dual-currency system that sweepstakes operators like Chumba Casino and Luckyland Slots rely on, which has allowed them to skirt gambling regulations by offering free coins alongside purchasable ones.

Critics argue that such vagueness could have unintended consequences.

The Social and Promotional Games Association (SPGA), a prominent trade body, condemned the law as "reckless,” warning that Montana has essentially criminalized “everyday digital promotions.”

A spokesperson for the SPGA said;

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

Industry fallout

Even before the law’s official passage, its impact had already begun to ripple. 

Virtual Gaming Worlds (VGW), the company behind several major sweepstakes casino brands, pulled out of the state entirely. 

VGW is also a founding member of the newly established Social Gaming Leadership Alliance (SGLA), which has not yet commented on the Montana decision.

Operators and legal analysts now fear that SB555 may inadvertently jeopardize legitimate rewards programs, like Microsoft Rewards or retail loyalty points systems, by blurring the line between gambling and gamified marketing.

Violators of the new law will face felony charges, fines of up to $50,000, and up to 10 years in prison.

Momentum shift

Until Montana’s bold move, the sweepstakes casino industry had been on a legal hot streak. 

Legislative attempts to outlaw the sector failed in Arkansas, Florida, Maryland, and Mississippi, often collapsing under political wrangling or lack of clarity.

But that tide appears to be turning. 

Recent developments in Louisiana, New York, and Pennsylvania signal a renewed push against the sweepstakes model, with New Jersey also entering the fray. 

Earlier, we reported on New Jersey introducing a bill that, unlike Montana’s, directly names sweepstakes casinos and outlines a targeted framework for prohibition.

Will Montana act as a template?

Montana’s approach could be seen as a template, or a cautionary tale, for other states eyeing regulation. 

While it takes a hardline stance, critics argue that the law’s imprecise language could lead to overregulation and legal confusion, rather than a meaningful crackdown on illicit gaming.

As the first domino falls, all eyes now turn to statehouses across the country. Will others follow Montana’s lead, or learn from its missteps?