• Montana has moved forward with a ban on sweepstakes casinos, becoming the first US state to do so
• The SPGA has criticized the move and said it was a reckless act on the part of lawmakers
• VGW has withdrawn its Sweeps Coins from New York in the meantime

Sweepstakes are coming under attack across the United States, with states such as Michigan, New York, Nevada, and many others going on the offensive against the sector.

Now, Montana has become the first state in the country to actually ban the sector outright, prompting a quick response from the Social and Promotional Gaming Alliance (SPGA), a trade group set up to fight back against overreaching regulation targeting the vertical.

Montana becomes an outlier in banning sweepstakes

The SPGA has argued that Senate Bill 555, which was signed by State Gov. Greg Gianforte last week, is effectively reclassifying as illegal games and products that have been legitimate and free-to-play promotional games.

The SPGA has said that there is a significant difference between what constitutes "Internet gambling," as Senate Bill 555 designates sweepstakes platforms, and the platforms themselves. A spokesperson for the association said this in a statement shared with the media:

"Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans. It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices."

The SPGA has reminded that sweepstakes are a well-established and regulated activity, pointing out the fact that Microsoft allows consumers to collect points and then use those points to enter various contests for prizes, including a $2,000,000 giveaway that is currently ongoing.

Other states try, but decide against banning sweepstakes

This is legally recognized and accepted, argued the SPGA, adding that Montana has taken a reckless step that fails to recognize the ensuing economic and consumer consequences. The SPGA has pointed out that other states tried to ban sweepstakes in 2025, including Arkansas, Maryland, Mississippi, and Florida, but they ultimately voted against it.

This statement comes just shortly after the VGW announced that it is withdrawing its own Sweeps Coins products from the market in New York. The company is still going to operate its Gold Coins currency and allow players to play for free, but it will, at the same time, phase out all Sweeps Coins capabilities by August 1, 2025.

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