Montana becomes the first state to ban sweepstakes casinos
Montana has become the first US state to officially ban sweepstakes casinos, after Senate Bill 555 was signed into law, but will more states potentially follow suit?
It’s fair to say that Montana and sweepstakes casinos haven’t always gone hand-in-hand. These platforms previously attracted a wide audience due to their blend of gaming and promotional play, which has led to a fairly unique model.
However, gamblers have been approaching with more caution given their lack of rules and regulations with oversight, meaning that the way in which sweepstakes casinos operate has led to increased observation and examination.
Senate Bill 555 has now been signed into law
Governor Greg Gianforte signed off on the legislation, which takes place from October 1, 2025. Senate Bill 555 is aiming to mark a significant shift in how forms of gambling are regulated in the state.
State Senator Vince Ricci presented the bill in April and, after being signed into law, it will aim to help strengthen the Department of Justice by presenting them with the necessary materials or resources to fight against this problem.
What are sweepstakes casinos?
Sweepstakes casinos don’t involve real money wagers, unlike traditional casinos. Instead, punters play with tokens such as virtual coins that have no real-world monetary value. No purchase is necessary to enter or win, to comply with US laws.
Sweepstakes casinos are often used to boost brand awareness, collect consumer data or increase engagement in exchange for free play and the chance to win real money.
The rules and regulations of sweepstakes are governed at both federal and state levels, to protect gamblers from scams.
Stake.us is probably the most well-known sweepstakes casino, and they have faced their fair share of scrutiny throughout the United States given they are not regulated by authorities, at either state or federal level.
You might wonder, where can I play Stake.us in 2025? Currently there are 35 states that permit Stake.us sweepstakes, but a few have pending law suits with the operator.
But how did the state of Montana get to this point?
In July 2024, VGW Holdings – the parent company of Chumba Casino, LuckyLand Slots and Global Poker – announced that it would cease trading in Montana; citing stricter regulations as their reason for doing so.
Other platforms like Pulsz have withdrawn from the state, with the legal framework that was previously in existence meaning that the banning of sweepstakes casinos had been a long time coming.
The state of Montana aims to enforce protection standards for sweepstakes casinos, ensuring both transparency and fairness.
This means that operators must therefore disclose game rules, winning odds and redemption processes for participants who are at least 18 years of age.
The landlocked region of Montana had permitted sweepstakes casinos under specific conditions, distinguishing them from traditional online gambling. However, recent withdrawals by major operators indicates a shift in attitude.
With the government bodies going down a stricter path, residents that are interested in participating may be forced to cross into a nearby state like North Dakota to the east, South Dakota to the southeast, Wyoming to the south or cross into Canadian provinces in the north.
State-by-state, where are the more lenient areas regarding sweepstakes casinos?
The likes of Washington, Nevada, Idaho and New York are opposed to sweepstakes models, with the capital city holding the strictest stance when it comes to social casino games.
In Idaho, residents can’t often redeem their winnings and some sweepstakes are strictly unpermitted.
Nevada, despite being seen as a casino hotspot, doesn’t allow some sweepstakes-style platforms to operate due to their strict gambling laws.
Some crackdowns on sweepstake promotions have taken place in Texas, but they are still accessible in Florida. Although some regulators have begun to take caution.
However, there’s mixed attitudes towards these games in California, Illinois, Georgia and Arizona.
There is little-to-no enforcement or regulation in the likes of Ohio, Pennsylvania, Wisconsin and North Carolina with s able to access sweepstakes platforms.
They can fly under the radar in Alabama, Arkansas and Mississippi with Colorado, Indiana and South Dakota also believed to be a tad more tolerant.
It is apparent that Stake.us has decided to shy away from areas where authorities can potentially penalise unlicensed and unregulated platforms.
Louisiana has become the latest state, perhaps inspired by Montana, to move towards banning sweepstakes casinos.
In April, Louisiana unanimously ed Senate Bill 181 which classifies sweepstakes gambling as illegal gambling.
That legislation was officially enrolled just a few days ago after ing both the House and the Senate.
The bill targets specific platforms that use a dual-currency system, like sweepstakes casinos, that allow players to exchange virtual currency – like gold coins or sweeps coins – for cash or other prizes.
Violators could face fines ranging from $10,000 to $100,000 and be subject to penalties, under the state’s trade practices laws.
These actions appear to have led to a host of sweepstakes casinos withdrawing from the Pelican State.
Should sweepstakes casinos be shunned or accepted?
Love them or hate them, sweepstakes casinos’ marketing effectiveness cannot be denied through brand exposure, engagement and data collection.
Clear regulations are in place, and they are fun to play with no or little cost with guaranteed excitement attached.
Frequent scams have made customers wary and not just through sharing personal information. Each state may have unique rules and failure to comply can result in fines, lawsuits or bad publicity.
Manipulative marketing such as misleading practices or burying information in small print can also provide restrictions.
Younger s, perhaps more tech-savvy than their elderly counterparts, will see sweepstake casinos as positive due to the little cost and potential financial perks that can come from them.
Regulators and lawmakers will be increasingly skeptical, considering the constant scrutinising and tightening of rules.
The state of Montana’s viewpoint will probably make most Americans begin to sit up and take notice.
Anti-gambling advocates will naturally be opposed to them, perhaps feeling as though sweepstakes casinos are trying to masquerade as something that they are not; given they provide a platform to gamble.
However, it’s tricky to pin down what a casual customer makes of sweepstakes casinos given they’ll likely be as curious as they are cautious.
For many, they are a world unknown and it seems like the US is trying to deny its residents the opportunity to get to know them.
