Legislation

Montana Becomes the First State to Ban Sweepstakes Gaming

Tuesday 27 de May 2025 / 12:00

⏱ 1 min read

(Montana).- Montana makes history as the first U.S. state to ban sweepstakes gaming, with Governor Greg Gianforte signing SB 555 into law.

Montana Becomes the First State to Ban Sweepstakes Gaming

Montana has enacted Bill SB555, a broad measure aimed at stopping all forms of online gambling, including sweepstakes games, despite the bill not explicitly mentioning them.

The bill defines "internet gaming" as any platform, website, or app that allows users to place bets using any form of currency. This definition is crucial in banning sweepstakes games that use dual currencies to bypass state gaming regulations.

Industry Backlash Over Vague Language

Opponents, including the Social and Promotional Games Association (SPGA), have criticized the bill as reckless, arguing that its vague wording could criminalize everyday digital promotions.

Despite the ban, social casinos that allow players to play for free with no chance of winning real money will still be permitted under the new law.

The sweepstakes industry had previously seen multiple legal victories, with bills in Arkansas, Maryland, and Mississippi failing before reaching debate. Florida also rejected two separate bills aimed at banning sweepstakes games.

New Wave of Legal Challenges

Following Montana’s decision, other states have ramped up efforts to regulate sweepstakes gaming:

  • Louisiana introduced Bill SB181 targeting sweepstakes operators.
  • New York is fast-tracking Bill S5935 toward adoption.
  • Pennsylvania issued cease-and-desist letters to 18 sweepstakes operators.

Categoría:Legislation

Tags: Sin tags

País: United States

Región: North America

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