Gambling control division highlights $83.7M in video‑gaming tax revenue, targets online casino apps

Jason Johnson, administrator of the Attorney General's Gambling Control Division, told the committee that the division regulates video gaming machines (Keno), video poker, bingo, live card games and various fundraising games and that a 15 percent tax on video gaming machines produced $83.7 million in fiscal 2024.

Johnson described the division's enforcement and regulatory structure: 34 FTE across seven regional offices conduct inspections, background checks and audits; the division runs a lab to test and audit machines and two programmers inspect machine software; auditors examine financials to ensure ownership disclosures are accurate.

A high enforcement priority is online casino-style apps that allow purchase of in‑app coins and, in some cases, cash withdrawals. Johnson said investigators test whether Montana users can access apps, whether credit card purchases are enabled and whether the apps permit withdrawals. When apps operate illegally in Montana, the division issues cease‑and‑desist letters and has had success in getting some operators to block Montana access.

Johnson urged stronger penalties for online operators and said he has drafted proposed language that could raise fines and criminal penalties to deter offshore operators. He also highlighted outreach to fraternal and veterans organizations to help bring volunteer boards into compliance and cooperation with liquor and tobacco inspection efforts.

Senators asked about machine security (rare hacking/glitch instances), the share of machines on online (tier‑1) reporting systems (administrator estimated 80–85%), inspections counts and addiction support. Johnson said the Council on Problem Gambling — funded by industry contributions — provides statewide problem‑gambling services and that the division receives no dedicated funding for addiction treatment.