Montana Online Contest: Win Trails through Gambling Adventure
Montana Makes History as First State to Ban Online Sweepstakes Games
In a landmark move, Montana has become the first state to officially prohibit online sweepstakes games. Governor Greg Gianforte (R) signed Senate Bill 555 (SB 555) into law this week, effectively banning the online games without explicitly mentioning them.
The bill, which will go into effect on October 1, 2025, will require online sweepstakes operators to vacate the state by the enactment date. The law does not expressly name sweepstakes games but targets platforms that knowingly transmit or receive gambling information and allow consumers to place bets using any form of currency.
SB 555, which passed through the Montana Senate and House of Representatives in April, defines "internet gambling" to include online casinos, by whatever name, that transmit or receive gambling information and make payouts of any form of currency. This definition encompasses sweepstakes platforms that often operate using virtual currencies that can be redeemed for cash prizes.
Operators offering free-to-play social casinos without cash rewards or real-money payouts are exempt from the new law. However, a person who knowingly violates the law could face a felony charge and a fine of up to $50,000 or imprisonment for not more than 10 years.
The Social and Promotional Games Association (SPGA), which represents the interests of companies that offer digital promotions, has criticized the new law, arguing that its broad language could inadvertently target legitimate promotional activities. Under the new law, for instance, a promotion such as "Microsoft Rewards," where users can earn points for using Microsoft products and redeem them to enter sweepstakes prizes, could potentially be misconstrued as gambling and banned.
The SPGA has called on lawmakers to reject vague prohibitions and instead create smart, modern frameworks to protect consumer choice. The association expressed concern that the law could undermine consumer trust in digital promotions and hinder business innovation by criminalizing everyday promotional activities.
- This landmark move by Montana has led to a ban on online games similar to sports betting, as Senate Bill 555 signed by Governor Greg Gianforte targets platforms that allow consumers to place stakes and receive payouts using any form of currency, whether it be real or virtual.
- Operators who offer online sweepstakes games in Montana have until October 1, 2025, to vacate the state, as the law does not explicitly name these games but instead focuses on platforms that transmit or receive gambling information.
- The newly passed law could potentially affect promotional activities such as "Microsoft Rewards," where users earn points for using Microsoft products and can redeem them to enter sweepstakes prizes, as the broad language of the law may inadvertently target such activities.
- The Social and Promotional Games Association has urged lawmakers to create more modern, smart frameworks to protect consumer choice and prevent the unwarranted criminalization of everyday promotional activities, expressing concern that vague prohibitions could undermine consumer trust in digital promotions and hinder business innovation.
