Montana is just one signature away from becoming the first US state to pass a law banning sweepstakes casinos.
SB555 will amend existing laws in the state to further specify the definition of illegal online gaming and explicitly include online casinos.
It does so by adding the following to current legislation: “[Internet gambling] includes online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited.
“This includes but is not limited to any platform, website, or application that knowingly transmits or receives gambling information, allows consumers to place a bet or wager using any form of currency, and makes payouts of any form of currency.”
The bill has been approved by the Senate and House, and can now only be blocked by a last-minute veto from Governor Greg Gianforte.
Targeting social casinos
The updated language clearly takes aim at social sweepstakes casinos, however, it is not yet clear if this includes all aspects of the vertical.
Most sweepstakes operators utilise a dual-currency system, where users can buy coins, commonly called Gold Coins, to use on free-to-play games.
In addition, when those coins are purchased, users are often allocated a second currency, often referred to as Sweeps Coins, that can be used to play games to earn more Sweeps Coins that can subsequently be cashed out and paid in real currency.
While the language of the new bill is geared towards prohibiting the use of wagering using Sweeps Coins, it is not yet clear if the Gold Coins would qualify as currency, given that they cannot be cashed out for real currency.
Montana leads the way
Montana is among a flurry of US states that have placed the sweepstakes vertical under scrutiny.
Lawmakers in Louisiana, New Jersey, Nevada and New York, among others, are currently considering legislation to prohibit sweepstakes.
Mississippi did look like it would be the first state to pass a bill related to sweeps this year, however, a late amendment by the House to add sports betting language thwarted its progress.
