Montana moves to rein in online gambling with new Senate Bill

Montana lawmakers are looking to go ahead with new legislation that could dramatically change the state’s stance on online gambling.

Senate Bill 555 (SB 555), introduced by State Sen. Vince Ricci, has cleared its third reading in the Senate and is now heading to the House, marking a strong push to regulate digital gambling operations — particularly those involving cryptocurrency.

The bill proposes major changes to Montana’s existing gambling laws, most notably a clearer and far stricter definition of what constitutes “internet gambling.”

What this new bill is looking to implement is that online casinos, gambling platforms using digital currencies like Bitcoin, and any service that facilitates bets or payouts with traditional or electronic payments fall under the umbrella of illegal internet gambling.

“We’re seeing more unlicensed gambling platforms targeting Montana consumers, and they’re doing it without any oversight,” Ricci said during a recent committee session. “This bill is about giving the Department of Justice the tools it needs to keep up.”

Digital currency in the crosshairs

Montana is a relatively crypto-friendly state, but SB 555 draws a firm line when it comes to digital assets being used specifically for gambling.

The new definition of internet gambling would make it illegal for operators to accept wagers or pay out winnings in any form of currency, including cryptocurrencies like Ethereum and Bitcoin.

This all looks to close loopholes that some operators may have exploited by leaning on alt-payment methods to operate in legal grey areas.

Gaming attorney Daniel Wallach, speaking to NEXT.io, noted the bill’s vague phrasing might stir up future legal battles. “Using the term ‘bet or wager’ always opens up room for debate,” he said. “It’s been a sticking point for years, especially when it comes to things like fantasy sports and prediction markets.”

Free-to-play games could also be affected

The bill is also piquing the interest from gaming industry bodies, including the Social and Promotional Games Association (SPGA).

A spokesperson warned that the current wording could be interpreted in ways that impact free-to-play games, which typically don’t involve real money but could technically fall under the broad “gambling” definition due to in-game currencies or reward systems.

“These are games enjoyed by millions, and lawmakers need to be careful they don’t inadvertently outlaw casual entertainment apps,” the SPGA said.

What kind of penalties are on the table?

Individuals or entities caught running illegal iGaming platforms could face fines of up to $50,000, up to 10 years in prison, or both.

Repeat offenders would lose their state-issued gambling licenses and be barred permanently from receiving new ones.

The proposed legislation also redirects all revenue from fines and penalties into the operational budget of the Montana Department of Justice.

This means that funds raised through enforcement would go directly toward policing gambling operations in the state.

What’s next?

The bill passed the Senate with unanimous support and now moves to the House for consideration.

If it passes, Montana will join a growing list of states who are moving to a more hardline stance on digital gambling.

But as gaming law continues to evolve and technology outpaces regulation, there’s still plenty of debate ahead.

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