Jason Johnson, administrator of the Department of Justice’s Gambling Control Division, briefed the Senate Business, Labor and Economic Affairs Committee on the division’s regulatory scope, enforcement priorities and revenue contributions from video gaming machines.

Johnson said the 15 percent tax on video gaming machines—enacted decades ago—generated approximately $83,700,000 in fiscal 2024. The division regulates keno/video poker/video gaming machines, live card games, bingo, fantasy sports leagues, raffles, Calcutta and sports pools, and other permitted contests; it does not regulate horse racing, tribal gaming (covered by compacts) or state lottery sports betting.

Johnson described the division’s structure—about 34 FTE with offices in Billings (headquarters), Helena (laboratory), Missoula, Kalispell, Great Falls, Bozeman and Glendive—investigative staff, auditors and technical services. He said investigators conduct more than 2,000 tobacco inspections and several hundred gambling or alcohol cases; the division performs criminal background checks, audits ownership and financial information and inspects machines and premises for compliance.

A priority for the division is online casino apps that allow Montana residents to create accounts, buy virtual coins and withdraw cash. Johnson said many of those operations are offshore, provide few consumer protections and may undercut licensed Montana businesses. The division is sending cease‑and‑desist notices and pursuing enforcement where possible; he said other states have used felony penalties and civil actions successfully against similar operators.

Johnson explained how machines are monitored. Most machines are on an electronic (“tier 1”) reporting system that sends data every 30 seconds; other machines report manually every two weeks. He said tampering is rare and most manufacturers and route operators monitor for anomalies, but the division investigates irregularities.

Johnson noted the division’s partnership with the Montana Council on Problem Gambling (industry‑funded) for treatment and outreach and described outreach and education for small nonprofits and fraternal organizations that run bingo and other fundraisers. He offered the division’s website and materials to the committee and said the division continues to monitor and refine enforcement approaches for online operators.