Montana's new bill 555 makes it the first state to ban sweepstakes casinos
The bill targets platforms that support payouts with any form of currency, which sweepstakes casinos fall under
The SPGA criticizes this new bill and calls it reckless because of its vague language
Sweepstakes casinos allow players to wager on casino-style games using virtual currencies. These casinos have no license, but their mode of operation has made them a legal alternative in various states, including Montana. However, things have changed with Bill 555.
This new bill from Montana bans platforms that allow residents to play games using any form of currency, which sweepstakes fall under. So, does this mark the end of sweepstakes casinos and the introduction of a new era? These are the questions we aim to answer here. We’ll explore the new bill 555 in detail, along with its implications.
Montana’s SB 555 bill passed through the House and Senate in April and will come into effect on the 1st of October. The bill specifically places a ban on online casinos, including but not limited to any website, application, or platform that knowingly shares or collects gambling information, allows customers to wager using any type of currency, or makes payouts in any form of currency.
While the bill does not mention Sweepstakes casinos directly, focusing on any type of currency puts it under the ban. According to the bill, any violator will be charged a fine of up to $50,000, face up to 10 years in prison, or both.
As expected, not everyone is happy with the new law in Montana. The Social and Promotional Games Association is worried about the vague language used in the bill. It believes the bill may also hinder rewards programs like those provided by airlines, hotels, and tech companies.
An SPGA spokesperson said, “Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans.” They added that it’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”
The SPGA has been very outspoken in its concerns regarding bills targeting sweepstakes casinos. Louisiana’s SB 181 also passed the Senate last month, with the SPGA raising concerns about the implications.
Unfortunately, Montana is not the only state that has tried to ban sweepstakes casinos. However, not all states have been as successful. Mississippi tried to ban sweepstakes casinos but failed when the state was unable to make online sports betting legal. This is because a single bill tied both options, meaning both had to be successful for the bill to go through.
There was also an attempt to ban sweepstakes in New Jersey through Bill A5196, introduced by Assemblyman Clinton Calabrese. The bill has passed the state Assembly committee and is still in the works. A similar bill also advanced in Connecticut and will lead to a ban on sweepstakes casinos if successful.
Florida pushed two bills that aimed to ban sweepstakes games, which were both voted down. Lastly, Pennsylvania sent cease-and-desist letters to 18 sweepstakes casinos offering games to residents without licenses.
The SGPA spokesperson went on to note that “Montana’s lawmakers have taken a reckless step, ignoring the economic and consumer consequences and diverging from states like Arkansas, Maryland, Mississippi, and Florida, which have all rejected similar bans in 2025.
Other states with active bills still in progress are looking to lock down sweepstakes casinos, including New York and Louisiana, as mentioned earlier.
This is not the first time the sweepstakes industry has been under attack. There have been multiple tries in various states that have not come to fruition. However, the recent decision in Montana may set a new precedent, as many states that have failed previously might want to try a similar approach.
If more states go through the route Montana has taken, it could lead to a change in regulations. This might mean many sweepstakes sites will stop operations or change how they offer services. The good news is that while things might look grim right now, it does not necessarily mean the end for sweepstakes platforms. They have been able to remain legal in the past and will certainly find a way to do so.
For now, sweepstakes platforms are still open in most states, and players can continue to play casino-style games at no cost. If you are considering playing on a sweepstakes casino, use our sweepstakes finder to find the right platform for you.
