A bill effectively booting sweepstakes gaming sites out of Montana has passed both chambers of the state legislature and is just a Gov. Greg Gianforte signature away from becoming law. It was returned from enrolling Monday and will land on Gianforte’s desk soon.
Senate Bill 555 is not billed as a sweepstakes ban bill.
It never explicitly uses the word “sweepstakes.”
It doesn’t directly mention sweeps gaming in any way, actually.
However, its just-vague-enough language is seen as a catch-all by industry observers and legal experts that encompasses sweepstakes casinos. That means, of the flurry of states that have considered sweeps ban bills this legislative session, Montana’s is the first to pass.
Many of the most notable sweeps gaming brands, including all three VGW sites in Chumba Casino, LuckyLand Slots, and Global Poker, had already shut down sweeps operations in Montana before SB 555’s passage.
‘Any form of currency’
SB 555 is a bill designed to “generally revise gambling laws,” as its summary states. One of those laws it revises involves the definition of “internet gambling.”
Specifically, SB 555 changes Montana’s existing definition of internet gambling to explicitly include online casinos. Here is the exact new language the bill adds to state law:
“The term [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.”
Any form of currency.
There’s your one-size-fits-all phrase. The “any form of currency” umbrella is vast and very likely will cover things like cryptocurrency and Sweeps Coins.
Some sweeps operators may try to fight it, but a court would likely rule the bill’s language includes Sweeps Coins. Sweeps Coins can be redeemed for real cash. Therefore, the notion of “wagering” using Sweeps Coins comes with the potential of winning a prize that can equate to real-world cash value.
Are social casinos safe?
Since Gold Coins — which players use in the free-to-play versions of sweeps platforms — cannot be redeemed for real cash, SB 555 may not outlaw social casinos. In fact, SB 555 makes a special note of “online casinos that do not allow the use of currency of any kind”, saying these “are not considered a gambling activity and therefore are permitted.”
Putting two and two together, it feels like this line is about social casinos.
However, you could argue Gold Coins do have currency value, as players have the option to purchase Gold Coins to use for the online slots and table games. (They can also get Gold Coins simply by logging in, though, and don’t ever have to make a purchase to play with Gold Coins.)
What kind of effect might Montana have?
No matter how you slice it, SB 555’s passage in Montana is a loss for sweepstakes operators.
How big of a loss? Well, in terms of revenue, not big. We don’t get revenue figures from sweeps operators because their industry isn’t regulated. But it’s safe to assume Montana — which boasts the eighth-smallest population in the country — wasn’t printing out money for the Chumba Casinos and McLucks of the world.
Perhaps the greater impact is in perception.
A state legislature — no matter the state’s size — officially outlawing an industry is a blow to that industry’s credibility. Whether right or wrong, there’s no way around that.
And there’s this too: Nobody likes to be the first. There’s pressure in being the first to make a decision. But once you see somebody make that decision, it’s easier for you to make. The same, potentially, applies to legislatures seeing other legislatures pass bills similar to ones they’re considering. (Insert whatever cliché you want about following the crowd, peer pressure — you get it.)
Eleven states have considered bills that would ban sweepstakes gaming so far this legislative session. Montana is the first to get theirs through both legislative chambers. Of course, that could ultimately mean nothing in the long run. Several bills are stalled. Some have already failed. But bills in some states are still alive, and it’s fair to wonder if Montana’s passage pushes the door open further for other states — even just a crack.
Nevada is pretty close and Louisiana is moving quickly.
