Montana Redraws the Line on Internet Gambling

How Montana Just Redefined Online Gambling

It’s happening: Montana has redefined internet gambling, and the ripple effects are real.

Senate Bill 555, signed into law in April 2025, doesn’t just tweak definitions; it redefines what counts as “internet gambling” under state law, pulling online casinos directly into the regulatory spotlight.

But there’s a catch: the new rules exclude platforms that don’t use any form of currency – not dollars, not crypto, not anything with real-world value. That carveout gives sweepstakes-style casinos the famous pass: As long as they stick to virtual coins and promo credits, they’re no longer considered gambling under Montana law.

In other words, Montana isn’t going after all online casinos – just the ones where real money is on the line. For operators sticking to currency-free models, Montana’s new law could bring something rare in this space: legal clarity – and a safer lane to operate in.

How Sweepstakes Casinos Fit Into Montana’s New Rules

Buried in the fine print, but unmistakably impactful, is a clause with industry-shaking implications: any online casino that “does not allow the use of currency of any kind” is no longer considered gambling under Montana law.

That means platforms operating on virtual coins or promotional credits – typical of sweepstakes-style casino models – are now explicitly legal under state statute, provided no real-money transactions or redemptions occur.

This framework aligns Montana with a growing cohort of states recognizing a compliance distinction between traditional iGaming and prize-based sweepstakes systems. For operators in the social casino space, it’s a quiet green light to expand digital footprints without triggering gambling violations.

Legal Risk Reframed: From Felony to Firewall

SB 555 doesn’t just define terms. It tightens the screws on non-compliant operators. The legislation introduces tiered penalties – distinguishing between misdemeanor-level solicitation of illegal gambling and felony-level operation of unlicensed internet casinos, including those hosted offshore.

Most notably, the law directly targets crypto-based sweepstakes gambling platforms. Cryptocurrency is now explicitly named within the definition of prohibited internet gambling.

Running crypto-based casino games in Montana? That could now land operators with felony charges, up to 10 years behind bars, and fines as high as $50,000 per violation. On top of that, the state’s Department of Justice now has broader power to revoke licenses and crack down on offenders – fast.

What Comes Next for Stakeholders?

With SB 555 now enrolled, enforcement responsibility falls squarely on Montana’s Department of Justice. All fines collected from violations will be routed to fund the department’s operational budget – a budgetary clause that may accelerate prosecutorial action against violators.

For legitimate sweepstakes platforms, the signal is clear: ensure all transactions are currency-free, avoid any language or mechanics that imply betting with value, and verify compliance with updated legal definitions. Conversely, for those straddling the regulatory line – especially offshore operators dealing in crypto – the risk of felony charges has never been more pronounced.

Learn More

New to Montana’s sweepstakes casino scene? Our full guide to Montana sweepstakes casinos dives into the state’s regulatory history, the biggest platforms operating legally, and how current laws shape what players can (and can’t) do. Whether you’re tracking compliance or just curious where the market stands, this is your go-to resource.

📚 Sources

• Montana Legislature. (2025). Senate Bill 555: An act generally revising gambling laws; revising the definition of Internet gambling to include online casinos; providing an exception for online casinos that do not allow the use of currency of any kind; including cryptocurrency in the definition of “internet gambling”; revising the disposal of fines to the credit of the Department of Justice; revising criminal penalties to include misdemeanor and felony crimes; and amending sections 23-5-112, 23-5-123, 23-5-154, and 23-5-162, MCA. Link