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Montana has become the first state to ban sweepstakes casinos within its borders. On Friday, May 23, Governor Greg Gianforte signed Senate Bill 555 (SB 555) into law, which will take effect on October 1, 2025.Top Crypto Casino in Saudi Arabia – BitStarz Ranked #1

While it doesn’t specify sweepstakes casinos, the new law prohibits all internet gambling involving any currency:

“The term [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.”

The phrase “any form of currency” is critical regarding sweepstakes and social casinos. These online gaming platforms don’t use cash directly; they utilize a dual currency system.

One allows users to play for fun, while the other enables them to redeem winnings for cash prizes. Users cannot buy the premium currency directly. Instead, they can receive it through promotions or as a gift with purchases of the fun-to-play currency.

Per SB 555, each violation is a felony punishable by a fine of up to $50,000 and/or 10 years in prison. The bill does allow internet gambling without currency.

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The Social and Promotional Games Association (SPGA), now one of two trade groups representing sweepstakes casinos, immediately criticized the new law.

The SPGA argues the law is overly vague and could criminalize legitimate promotional programs, such as Microsoft Rewards. In a press release, a spokesperson for SPGA called it a dangerous precedent:

“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans.”

It continued: “It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”

SPGA highlighted that lawmakers in other states, such as Arkansas and Florida, have rejected similar proposals. It urged lawmakers nationwide to avoid vague bans and support clear regulations.

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Montana may be the first to ban the social gaming platforms, but it’s one of 12 states where lawmakers have introduced legislation aimed at sweepstakes casinos:

• Arkansas
• Connecticut
• Florida
• Illinois
• Louisiana
• Maryland
• Mississipi
• Montana
• Nevada
• New Jersey
• New York
• Ohio

Efforts have already failed in several states. Mississippi’s Senate became the first legislative chamber in the US to ban the platforms, but arguments between the Senate and House over sports betting resulted in the bill failing.

Maryland’s Senate also passed a ban on sweepstakes casinos, but the proposal stalled in the House. As SPGA pointed out, bills in Florida and Arkansas also died.

Elsewhere, momentum is building. Last week saw significant movement as Ohio became the latest state to propose a ban. Meanwhile, Connecticut and Louisiana moved closer to joining Montana in making the platforms unlawful.

Both bills have passed the Senate. Connecticut’s bill is already scheduled for a House vote, while Louisiana’s has cleared the committee and awaits a floor consideration.

Meanwhile, companion bills in the New York Senate and House have moved past initial committees and await further action.