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Department of Justice seeks stronger penalties for offshore online casinos targeting Montana
Summary
House Bill 639 would expand the state's tools to pursue illegal online casino operators and classify offshore solicitations as felonies. The Gambling Control Division said enforcement is underway but limited by companies’ offshore locations.
HELENA — House Bill 639, introduced by Representative Mike Vinton, would expand Montana’s criminal tools to target offshore online casino operations that solicit Montana players, add cryptocurrency explicitly to the definition of money used for gambling, and keep collected fines with the Department of Justice to fund enforcement.
Jason Johnson, administrator of the Gambling Control Division at the Justice Department, testified the division has made investigating online casino companies a top enforcement priority and that licensed Montana businesses and licensed gambling operators view the offshore sites as an unfair, untaxed competitor. “This issue of online casinos has been the number‑one issue to Montana licensed gambling establishments for well over a year now,” Johnson said.
Johnson described the division’s investigative technique: undercover staff create user accounts, confirm whether Montana addresses are accepted, whether credit cards or fiat payment methods (now including cryptocurrency) are permitted, identify mechanisms for purchasing in‑game tokens or coins, and check whether the platforms permit cash‑outs as real money. When the division can demonstrate solicitation and payment flows, it issues cease‑and‑desist letters and, if compliance stops are not observed, pursues criminal enforcement.
Johnson told lawmakers the division has 13 investigators and is working cases sequentially. He said enforcement has succeeded in getting some vendors to stop offering services in Montana, but numerous offshore companies persist and present jurisdictional challenges. He said the department coordinates with federal partners (FBI, IRS) but that those agencies are often unable or unwilling to prioritize the cases.
Industry representatives from Montana’s licensed gaming sector endorsed the bill. Shawna Helfert of the Gaming Industry Association and John Iverson of the Montana Tavern Association said the measure gives state investigators clearer authority to go after companies that solicit Montana players without Montana licensure.
Ending: The committee did not record a final vote in the excerpt. Johnson and industry groups asked lawmakers to pass HB 639 to strengthen the state’s enforcement toolbox.
