Montana Enacts Statewide Ban on Online Gambling

Montana has formally outlawed all forms of online gambling, adopting one of the most restrictive approaches to internet wagering in the United States. Senate Bill 555, which took effect Oct. 1, expands the state’s gambling laws to prohibit online casinos, sweepstakes-style gaming platforms and prediction markets that operate without state authorization.

The law represents a decisive step by Montana lawmakers to assert control over gambling activity within the state’s borders. It exposes unlicensed operators—and those who promote them—to felony criminal liability, signaling a tougher enforcement posture against platforms that have proliferated nationally in recent years.

 

Law	Effective Date	Main Focus	Penalties
Senate Bill 555	Oct. 1, 2025	Bans all online gambling, sweepstakes casinos, and prediction markets	Up to 10 years in prison; fines up to $50,000

 

Broad expansion of online gambling prohibition

The Montana Legislature passed SB 555 in April, and Gov. Greg Gianforte signed it into law in May. The statute significantly broadens the definition of internet gambling to include nearly all forms of online wagering activity.

Under the law, it is illegal to operate or offer any online platform that relays gambling information, accepts wagers in any form of currency or digital credit, or pays out winnings to users located in Montana. This includes mobile apps, websites and other internet-based services. Violations are classified as felonies, carrying penalties of up to 10 years in prison and fines of as much as $50,000.

By criminalizing both operation and advertising, lawmakers aimed to cut off access points that allow unregulated platforms to reach Montana residents. Montana’s gambling landscape was already tightly constrained before SB 555. The state has never authorized online casinos, internet poker or mobile sports betting in the conventional sense.

Legal gambling options are limited to in-person activity. Several tribal casinos operate electronic gaming machines on tribal land, and sports betting is permitted exclusively through the Montana Lottery. The state’s lottery-run platform, Sports Bet Montana, allows users to create accounts and build bet slips online, but wagers must still be placed at licensed physical locations. No privately operated online casino or sportsbook has ever been licensed in the state, a status that SB 555 reinforces rather than changes.

 

Focus on sweepstakes casinos and prediction markets

Lawmakers described sweepstakes casinos and online prediction markets as the primary targets of the legislation. These platforms have expanded rapidly across the U.S., often arguing that they fall outside traditional gambling laws. Sweepstakes casinos typically use dual-currency systems, offering “sweep coins” that can be redeemed for cash prizes. While participation is often framed as free-to-play, users may purchase additional digital currency with real money, creating a structure that closely resembles real-money gambling. Montana officials argue that these sites operate without meaningful oversight, offering no assurance of game integrity or payout reliability.

Prediction markets and wagering exchanges were also swept into the ban. These platforms allow users to trade contracts based on real-world outcomes, including elections, entertainment events and increasingly sports-related results. Their operators often claim federal oversight, but Montana’s law explicitly prohibits any online gambling platform accessible within the state, regardless of how it is regulated elsewhere.

One prominent operator, Kalshi, has said it is unconcerned about state bans because it operates under federal authority. That position sets up potential legal conflict as Montana moves to enforce its new law.

 

Consumer protection cited as central goal

Supporters of SB 555 say the measure is primarily about protecting consumers from unregulated gambling products. During legislative debate, lawmakers argued that players using offshore or sweepstakes-style platforms have little recourse if funds are lost, games malfunction or withdrawals are denied.

Concerns about gambling-related harm also featured prominently. Lawmakers referenced a WalletHub report that ranked Montana as the third most gambling-addicted state in the country, with roughly 2.5% of residents meeting criteria for a gambling disorder. Proponents said the statistic underscored the need to limit easy access to online betting.

 

These sites aren’t accountable to anyone. We want to make sure Montanans aren’t exposed to that kind of risk.

 

Enforcement and broader implications

With SB 555 now in effect, Montana has positioned itself as an outlier among states, many of which are still debating how to regulate sweepstakes casinos and prediction markets rather than banning them outright. State officials believe the law closes loopholes in outdated gambling statutes and creates a clearer enforcement framework.

Unlicensed operators that continue to serve Montana residents could soon face prosecution, potentially making the state a test case for aggressive enforcement against online gambling platforms. The outcome may influence how other states approach the growing tension between consumer protection, federal oversight claims and the rapid expansion of online betting products.