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Montana’s ban on internet gambling began on October 1, just five months after Gov. Greg Gianforte signed the ban into law, effectively banning sweepstakes casinos and real money online casinos because of its broad definition of internet gambling.
“[Internet gambling] includes online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited,” the law reads. “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 ban is a rarity, as states are more likely to either legalize online casinos or ban sweepstakes casinos, but not ban both through new legalization. That being said, it does add to the momentum that sweeps bans have gained this year. In August, New Jersey enacted a sweeps casino ban.
Bill sponsor says law protects consumer
Rep. Vince Ricci, the bill’s sponsor, believes it’s an important part of protecting Montanans from the dangers of unregulated gaming.
“Montana consumers are unprotected from companies offering this type of online rated gambling,” Ricci told a Montana NBC affiliate. “Most importantly, the illegal industry undermines the licensed and taxpaying Montana gambling businesses.”
Ricci’s argument is a popular one among adversaries of sweepstakes casinos. The platforms typically don’t operate under the same regulations as legal online casinos, opening the door, in theory, for policies and practices that could hurt consumers.
Additionally, sweeps casinos legislative niche typically doesn’t require them to pay the same taxes on revenue that regulated online casinos pay.
Sweepstakes casino advocates push back on ban
Montana’s ban drew harsh criticism from arguably the loudest voice in the sweeps casino lobby, the Social & Promotional Games Association.
In particular, the SPGA railed against the bill’s broad definition of “internet gaming.”
“This vague and sweeping law reclassifies legitimate, free-to-play promotional games as ‘internet gambling,’ ignoring the clear legal and operational distinctions between sweepstakes platforms and real-money online casinos,” the SPGA said in a statement. “Under SB 555, even platforms with no purchase required and robust consumer safeguards could now face criminal penalties.”
The Big Sky State’s legislation could serve as a test case for other states that want to ban all types of online casino or sweeps gaming.
While similar attempts by lawmakers in other states have failed, the SPGA pointed out, the prospect of Montana’s bill being a template for other states spurred the organization to urge “lawmakers nationwide to reject vague prohibition and instead protect consumer choice through smart, modern frameworks, if action is even needed at all.”
