Montana has made history by becoming the first U.S. state to outlaw all forms of internet gambling involving real or digital currency.
Senate Bill 555, signed into law by Governor Greg Gianforte, took effect on October 1, 2025, and grants the state’s Department of Justice (DOJ) broad authority to crack down on illegal online gambling operations based in the state. Under the new law, violators can face fines of up to $50,000.
Senator Vince Ricci, who sponsored the bill, emphasized its goal of protecting residents from unregulated online platforms. However, the sweeping nature of the legislation has sparked concern among industry groups, especially regarding its potential to unintentionally target free-to-play apps, sweepstakes casinos, and promotional games.
Offshore Gambling Gains Traction
Despite the ban, Montana’s appetite for online sports gambling remains strong. Many residents are turning to offshore gambling sites, which operate outside U.S. jurisdiction and offer enticing features such as fast withdrawals, diverse game selections, and user-friendly interfaces. These platforms are not subject to Montana’s regulations, making them a popular alternative.
While federal laws, such as the Unlawful Internet Gambling Enforcement Act (UIGEA), restrict financial institutions from processing payments to offshore operators, individual users are not typically prosecuted.
As the legalities of Montana’s regulated sports betting market evolve, we will continue to keep our readers updated on the latest legal regulations and developments.
Montana’s sports betting market is growing steadily
Unlike states with fully mobile sports betting ecosystems, Montana’s system requires users to place bets through kiosks at licensed physical locations such as bars, restaurants, and casinos. Although a mobile app is available, it only functions when users are physically present at one of these venues due to geolocation restrictions. This setup contrasts sharply with mobile-first states like Michigan and New Jersey, where users can place bets from anywhere within state lines, leading to significantly higher engagement and revenue.
Montana’s approach also stands in stark contrast to Wyoming, its less populous neighbor. Despite having a population of under 600,000 compared to Montana’s 1.1 million, Wyoming’s fully online sports betting model allows residents to wager from their phones or computers, resulting in consistently higher monthly handles. Wyoming’s embrace of digital platforms has enabled it to attract more bettors and generate more revenue, even with fewer residents.
Additional insights from Montana’s June 2025 report show:
- A total handle of $4.98 million, down from May’s $6.21 million.
- $763,060 in revenue, with a 15.32% hold percentage, notably above the year-to-date average.
- $64,900 in state tax revenue collected from sports betting.