Summary
- Montana has taken the lead as the first state in the U.S. to implement a ban on sweepstakes casinos.
- The SPGA has condemned the decision, calling it a reckless action by the lawmakers.
- VGW has temporarily withdrawn its Sweeps Coins from New York.
Sweepstakes are facing increasing scrutiny across the United States, with states like Michigan, New York, Nevada, and others taking aggressive measures against the industry. Recently, Montana became the first state to impose a complete ban on sweepstakes, leading to a swift reaction from the Social and Promotional Gaming Alliance (SPGA), a trade organization established to challenge excessive regulatory actions affecting this sector.
Montana becomes an outlier in banning sweepstakes
The SPGA has contended that Senate Bill 555, which was signed into law by State Governor Greg Gianforte last week, effectively reclassifies certain legitimate, free-to-play promotional games and products as illegal. According to the SPGA, there is a crucial distinction between Internet gambling, as defined by Senate Bill 555 with regards to sweepstakes platforms, and the platforms themselves. A spokesperson for the association stated in a media release: Montana has just criminalized routine digital promotions with legislation so broad that it fails to specify what it prohibits. This sets a dangerous precedent that could undermine consumer confidence, stifle business innovation, and disrupt long-standing legal marketing practices. The SPGA has also emphasized that sweepstakes are a well-recognized and regulated activity, citing the example of Microsoft, which allows consumers to earn points to enter various contests, including a current $2,000,000 giveaway.
Other states try, but decide against banning sweepstakes
The SPGA has argued that this decision is legally recognized and accepted, criticizing Montana for making a reckless move that ignores the resulting economic and consumer impacts. They noted that other states, including Arkansas, Maryland, Mississippi, and Florida, considered banning sweepstakes in 2025 but ultimately decided against it. This statement follows the announcement from VGW that it will withdraw its Sweeps Coins products from the New York market. While the company will continue offering its Gold Coins currency for free play, it plans to eliminate all Sweeps Coins features by August 1, 2025. Credit: Unsplash.com You need to be logged in to add a comment. Drag and drop files or click here to upload. We could not determine the language of your reply. Please select your language from the following options. Your post has been sent to forum administrators for review to ensure it complies with our community guidelines. You will receive an email regarding the outcome within 48 hours.
