Montana Cracks Down On Illegal Online Gambling

Legislators in Montana are cracking down on unauthorized online gambling.

Lawmakers in Big Sky Country introduced several bills to crack down on those offering unauthorized online gaming in the state. Additionally, regulators joined the ever-growing list of states fighting against Kalshi’s sports prediction markets. Lastly, the state is one of the few to warn residents against a recent trend of online poker scams.

Legislation Could Hurt Sweepstakes Platforms

SB555 would clarify the state’s gaming laws and levy significant penalties for those involved in illegal online gaming.

Sen. Vince Ricci introduced the bill at the end of March, which has already passed the upper chamber. It made its way to the House earlier this week and is in its first committee hearing.

This legislation could affect sweepstakes casino models. Those who violate the law could face a $50,000 fine and up to 10 years in prison. Operators could also face significant punishment, and advertising for offshore gaming sites would also be banned.

“A person who purposely or knowingly operates any type of illegal internet gambling site within the state’s borders, including operating an online gambling site in the state through licensed or unlicensed offshore sources, is subject to felony criminal liabilities," the bill notes.

The bill comes as other gaming efforts are also underway in the state. With states like New Jersey and Nevada already banning Kalshi’s sports prediction markets, Montana has also moved to ban the offerings.

Prediction markets allow users to buy shares based on how likely or unlikely specific outcomes are. After the company announced allowing sports markets during March Madness, some states believed the platform’s offerings were too close to sports betting.

Montana Says “No” To Kalshi Prediction Markets

The Gambling Control Division of the Montana Department of Justice has now ordered the company to stop offering the prediction markets in the state. The department noted that the event contracts are “illegal gambling within the meaning of Montana law and accordingly calls upon Kalshi to cease and desist its illegal activities within the state of Montana.”

The cease and desist letter threatens legal action if the company doesn’t comply. Kalshi has already filed lawsuits against New Jersey and Nevada but hasn’t commented on the situation in Montana.

In that same vein, the Montana DOJ warned residents of fake online casinos aimed at obtaining residents’ credit card information. The sites mimic legitimate businesses like Town Pump convenience stores, Lucky Lil’s Casino, and the Kwataqnuk Resort and Casino. The sites then ask users to enter their credit card information to engage in online gambling.

Photo courtesy of Shutterstock

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