Montana committee hears bill to legalize online fantasy sports; opponents warn it opens door to wider online sports wagering

Senator Forrest Mandeville, sponsor of Senate Bill 551 and a member of the Senate Business and Labor Committee, told the committee the bill “will allow online fantasy sports participation for the residents of Montana.” The bill, as presented, defines fantasy sports as games of skill, gives the Montana Department of Justice rulemaking authority, sets an initial license fee of $5,000 and a 6.75% tax on vendor revenues, and requires participants to be at least 18 years old.

The bill’s sponsor said the measure includes safeguards in its definitions and that rulemaking will fill in administrative details. “Read the bill,” Mandeville said in closing, urging members to look at the statutory language and department rules that would regulate the activity.

Why it matters: The committee heard sharply divided testimony about whether SB 551 is a narrow legalization of fantasy‑sports contests or a broader expansion of online sports wagering. Opponents representing Montana gaming businesses said the bill’s text and carve‑outs would let national and offshore operators undercut in‑state casinos, taverns and the lottery. Proponents (none testified in the room) did not appear; the Department of Justice provided an informational witness.

Opponents raised three central…