Montana Makes History with Nation’s First Sweepstakes Casino Ban

A Groundbreaking Move

Montana just sparked a national first by outlawing online sweepstakes casinos, with Governor Greg Gianforte signing Senate Bill 555 (SB 555) into law.

Effective October 1, 2025, the bill clamps down on platforms using dual-currency systems, like those offering virtual coins swapped for cash, making Montana a trailblazer in regulating digital gambling.

SB 555 doesn’t name sweepstakes casinos outright but nails them by redefining “internet gambling” to include “online casinos, by whatever name known,” that handle bets or payouts in “any form of currency.” This broad language, passed by Montana’s legislature in April, zeros in on platforms like Chumba Casino, where players get free virtual coins but can buy more to chase real-money prizes.

Purely social games with no cash payouts are spared, but dual-currency setups, used by most sweepstakes operators, are now illegal. Violators face felony charges, with fines up to $50,000, up to 10 years in prison, or both per offense.

SPGA Fires Back

The Social and Promotional Games Association (SPGA) slammed SB 555 as a “reckless” overreach, arguing its vague wording could kneecap legit promotions like Microsoft Rewards or airline loyalty programs.

“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans,” an SPGA spokesperson said, calling it a “dangerous precedent” that threatens consumer trust and innovation.

The group warned that even free-to-play platforms with robust safeguards might face penalties, urging lawmakers to “reject vague prohibition and instead protect consumer choice through smart, modern frameworks.”

Virtual Gaming Worlds (VGW), behind Luckyland Slots, already bailed on Montana before SB 555’s passage. The law’s October 1, 2025, deadline gives others a narrow window to shut down or face felony heat.

Montana’s small population, eighth-lowest in the U.S., means the revenue hit for operators isn’t huge, but the ban’s symbolic blow stings.

Other States’ Struggles

Montana’s the first to cross the finish line, but it wasn’t alone in targeting sweepstakes. Mississippi’s bid collapsed when sports betting debates derailed a ban, while Arkansas, Maryland, and Florida also struck out in 2025.

Meanwhile, Louisiana’s anti-sweepstakes bill cleared its Senate and is grinding through the House, with a June 12 deadline looming.

Connecticut, New Jersey, and New York still have active proposals, and Nevada’s eyeing a broader gaming crackdown.