As multiple US markets continue to fend off the controversial sweepstakes sector, Montana prepares to take decisive steps and ban the vertical. If it does, it will become the first state to actually do so, potentially sparking stronger pushback against social casinos.
Montana Might Become the First State to End Sweeps Casinos
SB 555 was introduced by Senator Vince Ricci earlier this year. The measure seeks to amend the definition of online gambling in order to tackle gray market operators, unlicensed online casinos, and crypto operators.
If passed, the measure would change what is considered to constitute illegal gambling, broadening the definition to include products such as sweepstakes and crypto gaming products. Supporters of the bill wish to prevent players from gambling via communication technologies no matter the type of payment. The bill would also keep certain exceptions for nonprofit raffles, the state lottery and simulcast facilities.
For reference, the current Montana law doesn’t explicitly prohibit online casino games using digital assets, such as cryptocurrency, to place bets. Sweepstakes, on the other hand, often use other virtual tokens as currency, also exploiting this loophole.
SB 555 Passed the House and Senate
SB 555 has made quick strides and could very well become the first of its kind to pass the legislature and put an end to sweepstakes and crypto casinos. Three weeks after its approval by the Montana Senate, the measure also passed the House with overwhelming approval.
The 88-11 vote ensures that the measure will appear on Gov. Greg Gianforte’s desk for final approval.
If passed, the bill will carry a fine of up to $50,000 and up to 10 years in prison for violators of the ban. However, certain ambiguities remain, including whether sweepstakes offerings using non-cashable tokens will also suffer a ban.
In any case, SB 555’s rapid advancement has caused concerns among sweepstakes operators, some of which have already opted to exit Montana. This includes sweepstakes giant VGW, which operates popular sweeps brands, such as Luckyland Slots and Chumba Casino.
Regulated Gaming’s War on Sweepstakes Continues
In the meantime, other states are also considering banning sweepstakes operators. This includes New York where Senator Joseph Addabbo, a prominent promoter of regulated gaming, is spearheading SB 5935. That measure also seeks to put an end to social casinos, arguing that they continue to operate only due to legal loopholes.
The Social and Promotional Games Association (SPGA), an industry body promoting a responsible sweepstakes sector and championing the rights of the sweepstakes industry, however, has scrutinized SB 5935’s shortcomings and lack of clarity in certain areas, arguing that subsequent amendments have turned what was already a disaster into a catastrophe.