On Friday, Montana became the first US state to ban sweepstakes games within its borders. Governor Greg Gianforta signed Bill SB555 into law, closing the Big Sky State to sweepstakes gaming.
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Bill SB555 is a sweeping measure to stop all forms of online gambling in the northern state, including sweepstakes games, even if the bill doesn't mention "sweepstakes games" per se.
Internet Gaming Is Banned In Montana
Bill SB555 bans "internet gaming." According to the bill, that means any platform, website, or app that allows players to place a bet using "any form of currency". That last part of the definition is critical to banning online sweepstakes games that use dual currencies to by state gaming regulations.
Opponents such as the Social and Promotional Games Association (SPGA) have called out the state for being "reckless" in their legislation, stating that bill SB555's vague definition criminalizes everyday digital promotions.
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"Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans. It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices." -Social & Promotional Games Association Spokesman |
Odds Sharks did not receive a response to its request for comment from the newly formed Social Gaming Leadership Alliance (SGLA) on Montana's recent bill banning sweepstakes games.
The bill will allow social casinos that allow players to play purely for free with zero chance of winning actual currency.
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Sweepstakes Legal Win Streak Comes To An End
The sweepstakes industry had put together an impressive legal win streak up until this decision by Montana. In Arkansas and Maryland, bills seeking to ban sweepstakes games had both died well before they could even be debated. A bill in Mississippi faced a similar fate.
Florida had also voted down two different bills looking to ban sweepstakes games in the Sunshine State. The wind was very much in the sweeps industry's sails.
But then, another batch of legal challenges and banings rose, first in Louisiana with bill SB181, then in New York, where bill S5935 is being fast-tracked towards adoption, and finally, Pennsylvania sent cease-and-desist letters to 18 sweepstakes operators.
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