Sweepstakes casinos teetering on edge of being banned in Montana

Sweepstakes casinos just can’t catch a break in the US at the moment. Montana is one step away from banning the iGaming loophole, which would make it the first state to actually ban them.

Currently sitting at 75% progression, outside of the Governor pushing back on the bill, Montana’s sweepstakes casino ban is a done deal. Both the state’s House and Senate have approved the bill, SB555.

Montana’s bill currently states that those who violate its rulings will find themselves lumped with a fine of “not more than $50,000” or “imprisoned for not more than 10 years, or both, for each violation.”

As such, sweepstakes casinos are already fleeing the state. Operators like VGW, which runs the Chumba and Luckyland casinos, have already pulled out of the state.

Crackdowns across America are happening, with Louisiana and Pennsylvania being more recent entries into the fray. New York, New Jersey, and California are also striking back against what is effectively a giant loophole. However, some states like Maryland have fallen foul to bureaucracy, and Mississippi has outright rejected the idea of banning them.

New York’s senator, Joseph P. Addabbo Jr., who is also Chair of the NYS Senate Racing, Gaming, and Wagering Committee, said in March that it’s hard to regulate “operators… located offshore” and that they want to close the “loophole”.

As sweepstakes casinos don’t technically allow you to gamble with your own money, they manage to act as if it’s not just gambling. Players buy bundles of “gold coins” and “sweep coins” – sometimes referred to as something else – which are then used to either simply play the game for no cash prize (gold coins) or for cash prizes through the sweep coins.

However, there’s no regulations or preventative measures in most sweepstakes casinos. This can lead to the vulnerable becoming quickly addicted and spending far too much money on gambling through these cash bundles.

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