Montana becomes first US state to ban sweepstakes gambling

Montana has officially banned sweepstakes gambling after Governor Greg Gianforte signed Senate Bill 555 into law on Friday. The law takes effect October 1, making Montana the first state in the US to ban this form of gaming.

Sweepstakes gambling sites operate by allowing users to wager using free coins, but players can also purchase additional coins with real money or cryptocurrency, which can then be exchanged for cash or prizes. These unregulated and unlicensed online casinos have drawn increasing scrutiny from lawmakers and regulators nationwide.

SB 555, which passed both legislative chambers in April, broadly prohibits online casinos. Although the law does not specifically mention sweepstakes casinos, it bans “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.”

Violators face felony charges, fines up to $50,000, and up to 10 years in prison per offense.

Some operators, including Virtual Gaming Worlds (VGW)—the parent company of popular sweepstakes sites Chumba Casino and Luckyland Slots—have already exited Montana in anticipation of the law’s enforcement.

The Social and Promotional Games Association (SPGA) criticized the law, calling it “reckless” and warning it could unintentionally ban traditional digital promotions used by businesses like hotels and airlines.

“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans,” said a SPGA spokesperson. “It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.” 

The SPGA has voiced similar worries regarding Louisiana’s SB 181, which targets sweepstakes gambling and recently passed the Senate.

Other states have also tried and failed to ban sweepstakes gambling, including Mississippi, Florida, Arkansas, and Maryland. Meanwhile, sweepstakes gambling legislation remains active in Louisiana, Connecticut, New Jersey, and New York, signaling ongoing debate on the issue across the country.