Sweepstakes may face imminent demise in the US, given Montana's decision to enact a ban on such games.
Monday, May 25, 2025
Montana leads the way in cracking down on online sweepstakes casinos as Governor Greg Gianforte signs Senate Bill 555 into law, effective October 1, 2025.
The legislation, which prohibits internet gambling involving any form of currency, marks a significant move toward regulating the controversial industry. According to legal experts, the bill's language is broad, encompassing online casinos and any platform that accepts bets or wagers using digital or virtual cash.
The sweeping measure aims to address concerns that sweepstakes casinos offer unlicensed gambling, masked as free-to-play casino games with the option to upgrade play via coin purchases. However, distinguishing between these activities and traditional gambling becomes challenging under such circumstances.
Montana becomes the first state in the U.S. to take action against online sweepstakes casinos, leaving industry operatorsgrowing concerns over the law's impact on their businesses. The Social and Promotional Games Association, a lobbying group for sweepstakes, has criticized the enactment of SB 555, claiming it overlooks the differences between sweepstakes and real-money online casinos.
The group maintains that the law's language could inadvertently affect daily digital promotions, harm consumer trust, and disrupt established marketing practices. Additionally, they argue, commonplace promotions such as McDonald's Monopoly may unintentionally fall within the ban due to the bill's unclear language.
As violations of the law will be treated as felonies, penalties include fines up to $50,000 and imprisonment of up to ten years. Despite concerns from industry groups, the state government remains resolute in its efforts to regulate online gambling, setting a notable precedent for other states to follow.
The signing of Senate Bill 555 into law by Governor Greg Gianforte on May 25, 2025, sets a significant milestone in the regulation of online casinos in Montana, impacting both the controversial industry and general-news politics. With the legislation imposing fines up to $50,000 and imprisonment of up to ten years for violations, businesses in the online gaming sector express growing concerns about its effects on their operations. Meanwhile, the Social and Promotional Games Association, a lobbying group for sweepstakes, questions the law's potential impact on daily digital promotions, consumer trust, and marketing practices, even extending to common promotions like McDonald's Monopoly. The enactment of SB 555 heralds a new era in business regulations, particularly in the realm of finance and politics.
