Montana has become the first U.S. state to outlaw online sweepstakes casinos.
The ban comes into force after the legislation passed both chambers of the legislature last month, and now Governor Greg Gianforte has signed Senate Bill 555 into law.
Montana’s existing gaming legislation will be amended to reflect the changes, confirming that internet gambling now includes “online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited.”
“This includes but is not limited to any platform, website, 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,” read the bill.
Online sweepstakes casinos will be fully prohibited in the Big Sky Country, where all online gambling is illegal, as of October 1 this year.
The state does permit sports betting, tribal-ran casinos, and limited gaming machine provisions in bars and restaurants.
In the void that exists where online sportsbooks and casinos are prohibited, sweepstakes have emerged in recent times.
Active week for anti-sweeps legislation:
– Montana becomes 1st state to ban sweepstakes casinos
– CT and LA are one House floor vote away from joining MT
– Nevada unanimously passes bill targeting sweepstakes casinos
– Ohio becomes 12th state to propose sweepstakes casino ban
— Daniel Wallach (@WALLACHLEGAL) May 23, 2025
What are online sweepstakes casinos?
These social casinos – websites or apps where people can play the games – feature online slots and table games very similar to the real thing, but the key difference is that they don’t require any funds to be deposited for play to commence.
Social casino brands such as WinStar, LuckyLand, and Chumba instantly place a number of tokens and sweeps coins into players’ accounts as soon as they register on the sites, to be used in the games.
Players can then win prizes or, in some cases, real cash from the sweeps coins.
The sweepstakes winnings are differentiated from gambling profits because they have not been accrued from any risk, no money has been staked in the first place.
Such a grey area is very clear, leading to the action in Montana.
The reaction from the operators has been scathing, with one umbrella group criticizing the “vague and sweeping” legislation.
The Social and Promotional Games Association (SPGA) told SBC Americas that free-to-play promos from retailers and other parties could now fall under Montana’s new legal definition of sweeps.
“Even platforms with no purchase required and robust consumer safeguards could now face criminal penalties,” said the SPGA.
“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.”
VGW, the prominent operator behind Chumba Casino and Luckyland Casino, already decided to pull out of Montana before SB555 achieved its assent.
Montana has gone one step further than all other states pursuing enforcement on sweeps, becoming the first jurisdiction to enact legislation.
The others are still attempting to pass laws, or are currently in the process.
Image credit: Grok/X
