Montana Passes First Sweepstakes Casino Ban in United States

^{A scene from Helena, Montana, where the state just passed the first ban on Sweepstakes-style online casinos. (Photo: Cavan Images)}

Montana became the first US state to officially prohibit sweepstakes casinos after Gov. Greg Gianforte signed a bill that passed both houses of the state legislature.

Senate Bill 555 doesn’t specifically mention sweepstakes casinos by name, but uses language that is designed to ban the dual currency system that operators have used to get around traditional online gambling legal frameworks. 

Bill Expands Definition of Online Casinos to Include Sweepstakes Sites

The bill overwhelmingly passed in both the Montana Senate and House in April, before earning the governor’s signature in May. The bill will go into effect on Oct. 1, 2025. 

SB 555 targets online gambling more broadly, revising current laws to continue a ban on iGaming while ensuring its language doesn’t leave a carveout for sweepstakes casinos. In particular, the bill added a new clause to the state’s current definition of “internet gambling.”

“The term includes online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited,” the new language reads. “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.”

SB 555 also establishes felony charges for the operation of such sites, which include up to 10 years in prison and fines of up to $50,000. The new language does specifically carve out online casinos that don’t use any form of currency, noting that these sites – which would essentially mean social, play money casinos – are still permitted in the state.

Sweepstakes casinos typically work by offering both Gold Coins, which players can purchase for fun play, and Sweeps Coins, which players can obtain for free and can be redeemed for prizes. Sweeps Coins are never directly purchased, though they are most easily obtained as a “bonus” for purchasing Gold Coins. As a result, players never directly wager money in the casinos, which operators say allows them to circumvent gaming laws in most states.

The bill was blasted by the Social and Promotional Games Association (SPGA), an industry group that advocates for sweepstakes casinos.

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

States Cracking Down on Sweepstakes Model

The new legislation comes at a time when many states are attempting to crack down on sweepstakes casinos.

In February, the Mississippi Senate became the first legislative body in the United States to pass a sweepstakes casino ban, though the bill eventually died in conference committee. Similar bills have made progress in states like Connecticut, Maryland, and Florida, while West Virginia attorney general JB McCuskey issued subpoenas to multiple sweepstakes casino operators in January. 

Other states have considered folding sweepstakes casinos into their regulated gaming markets. 

In New York, State Sen. Joseph Addabbo (D-Queens) has argued that sweepstakes casinos should either be banned or incorporated into an iGaming bill that would legalize online casinos in general. And in New Jersey, Assemblyman Clinton Calabrese (D-Bergen County) introduced legislation to regulate and legalize the sweepstakes sites.