Montana Legislature Bans Online Gambling

The Montana legislature has made it clear that online gambling will not fly within the state's borders. By an overwhelming majority, Senate Bill 555 was passed and signed into law by Governor Greg Gianforte. This bill instantly becomes one of the most comprehensive anti-online gambling bills in the nation.

For the most part, this bill targets the ongoing proliferation of sweepstakes casinos and sites that accept prediction market wagers, though standard online casinos and sportsbooks are also prohibited. Sweepstakes casinos are social casinos that allow players to wager with free gold coins, which in and of themselves are not gambling. However, many of these sites also offer "sweepstakes coins" for sale, coins that can be used to enter contests and drawings where real prizes are awarded.

Prediction markets are betting options whereby gamblers can wager on the outcome of events like elections, the Academy Awards, or the stock market.

According to this new law, the penalties that could be levied on violators are quite significant. Any person or company caught operating any kind of online gambling site would be guilty of a felony and would be subject to a fine of $50,000 and or up to 10 years in prison.

Note: The sweepstakes casino site, managed by CEO Tarek Mansour, expects to continue operating in Montana under claims that they comply with federal law. Montana's new law will get tested early.

The New Gambling Landscape in Montana

The passing of SB 555 lays to rest any questions about the future of gambling in Montana. For the most part, this is a relatively conservative state with a very small population. The desire for access to online gambling has essentially been nonexistent.

As things stand now, the available gambling options are limited to the state lottery and several retail casinos that operate under the ownership and management of the state's Tribal community. The exclusive rights to control casino gambling are afforded to the Tribal community by the covenants of the Indian Gaming Regulatory Act of 1988.

It's noteworthy that Montana residents are permitted to wager on sports. However, sports betting access is controlled by the Montana Lottery through a solitary legal sports betting app called Sports Bet Montana. While the app is accessed online, bettors are still required to be in a retail sports betting facility when they make wagers. It's online, but then again, it's not.

Why Ban Online Gambling Now?

A quick look around the nation makes clear that online gambling continues to be one of the top online adult forms of entertainment. The passing of SB 555 comes as many states are wrestling with the same issues related to sweepstakes casinos and prediction market wagering.

According to supporters of the new law, it's not about restricting access to gambling. It's intended to protect consumers against rogue activities perpetrated by unlicensed gambling operators. If these types of sites lack accountability, they are seemingly free to act as they want. In the world of online gambling, that's a recipe for disaster.