Montana First to Ban Online Sweepstakes Gaming, Sets National Precedent
Montana became the first state to officially ban online sweepstakes games, with Gov. Greg Gianforte (R) signing SB 555 into law, effective October 1, 2025.
Snow-capped mountain peaks
The legislation effectively bans online sweepstakes gaming without explicitly naming it, prohibiting any platform that:
- Transmits or receives gambling information
- Allows consumers to place bets using any currency
- Makes payouts in any form of currency
Key aspects of the ban:
- Purely social games with no currency exchange remain legal
- Violations are considered felonies
- Maximum penalties include $50,000 fines and up to 10 years imprisonment
The Social and Promotional Games Association (SPGA) has criticized the bill's broad language, arguing it could affect legitimate digital promotions like Microsoft Rewards. The SPGA warns the legislation could:
- Undermine consumer trust
- Hamper business innovation
- Impact legal marketing practices
The organization advocates for smart, modern frameworks instead of broad prohibitions, urging lawmakers to protect consumer choice through clearer regulation.
All online sweepstakes operators must cease operations in Montana by the October 2025 enforcement date. This marks the first successful sweepstakes gaming ban in the United States, though several other states have proposed similar legislation.