Montana's new bill to crack down on unlicensed iGaming
In response to increasing concerns over unregulated online gaming platforms, Montana lawmakers are looking to tighten the state’s regulatory measures. Senator Vince Ricci has introduced Senate Bill 555 (SB 555), which proposes broadening what is considered illegal internet gambling to include online casinos and crypto betting operators.
This bill, aimed at redefining and expanding the boundaries of internet gambling regulation in Montana, is designed to amend the definition of and current regulations on online gambling. It also proposes defining stricter rules for what constitutes illegal online gambling and tightening penalties for violators. However, the bill will keep certain exceptions for nonprofit organisations and state-controlled gambling like lottery and simulcast facilities.
To close legal loopholes
The bill is designed to close legal loopholes that have allowed online casinos and cryptocurrency-based gambling platforms to operate in the state without legal consequences. The backers of the bill intend to stop players from gambling via communication technologies irrespective of the mode of payment. The current law does not strictly prohibit online casino games from accepting digital currencies, like crypto, to place bets.
Under the bill, not only hosting but promoting online gambling is also prohibited. It states that promotion of such products will become a misdemeanour, with operators of online casinos facing as much as 10 years in prison, fines of up to $50,000, or both. Moreover, violators would risk losing licenses, not only in Montana but also in other states where they may operate. They could also be barred from obtaining licenses in the future.
Bill’s wording important: SGPA
The bill currently faces opposition from groups like Social and Promotional Games Association (SPGA), which is an industry body promoting responsible sweepstakes. The SPGA worries that SB 555’s current wording could inadvertently target sweepstakes platforms, effectively rendering them illegal in Montana. Critics argue that the bill’s vague use of terms like “bet or wager” could include games where no actual betting takes place, such as free-to-play games with digital currency. SB 555 faces additional scrutiny in the House, where lawmakers are carefully considering its broader implications. Some have proposed amendments that could narrow the scope of the bill or clarify the language around sweepstakes games and digital currencies.
In related news, another US state, Louisiana, has fired a fresh warning shot in the war on sweepstakes casinos. Senate Bill 181 (SB181), filed on April 4 by Senator Adam Bass, could make online sweepstakes-style gambling illegal statewide. Louisiana’s not alone. In 2025 alone, New York, Maryland, New Jersey, Connecticut and Illinois have all advanced legislation to limit or outright ban sweepstakes gambling. Mississippi’s attempt nearly made it, passing both chambers before dying over unrelated sports betting language.
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