Barring a veto from Gov. Greg Gianforte, Montana is poised to be the first state to pass a law intended to crack down on sweepstakes casinos in the state.
Both the House and Senate approved SB555, which amends the existing gaming laws in the state to specify what illegal online gambling entails. It does so by adding the following to existing law:
“[Internet gambling] 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.”
Does the bill potentially take social casinos offline?
Most sweepstakes operator utilize a dual-currency system, where users can buy coins, often called Gold Coins, to use on games that are free-to-play to supplement the daily allotment of coins. When those coins are purchased, users also get an allotment of a second currency, often called Sweeps Coins, that can be used to play games to earn more Sweeps Coins that can be cashed out and paid in dollars.
While the language is targeted towards Sweeps Coins, it is unclear whether or not Gold Coins, which can not be cashed out, qualify as currency. It is also not entirely clear if purely social casino apps where users can buy coins in addition to free allotments would fall under this new prohibition.
Several operators, including VGW, the market leader behind Chumba Casino and Luckyland Casino, do not operate in Montana anymore, a decision made in advance of the bill advancing out of the legislature.
It looked as though Mississippi would be the first state to pass a bill related to sweeps in 2025. However, once sports betting was tacked onto the bill by the House, it stalled the process even though the bill passed through both chambers.
In the meantime, efforts in Louisiana and New York to limit the scope of sweepstrakes gaming sites are moving forward, with the Louisiana Senate advancing a bill earlier this week.
