Senate committee advances bill to let DOJ go after offshore online casinos, strips crypto language

The Senate Business, Labor and Economic Affairs Committee on Tuesday voted to advance Senate Bill 555, a measure that strengthens the Montana Department of Justice’s authority to pursue offshore online casinos that receive gambling revenue from Montana residents.

Sponsor Senator Vince Rickey introduced the bill as a targeted enforcement measure, saying it is meant to go after operators that "are not licensed gambling operators in Montana" rather than criminalize Montana players. Jason Johnson, administrator of the DOJ gambling control division, told the committee the bill clarifies what counts as a gambling activity and gives enforcement teeth, including clearer felony-level penalties tied to the existing statute cited in testimony as 23-5-162.

The department emphasized that the bill does not ban free-to-play social games. "It doesn't do that at all," Johnson said during his testimony, referring to a House-floor misunderstanding that the bill would outlaw cryptocurrency. Johnson and others told the committee they were prepared to remove explicit cryptocurrency language to avoid the earlier confusion; the committee adopted an amendment removing the cryptocurrency phrasing before advancing the bill.

Industry witnesses and regulated operators supported the measure. Shauna Helfert of the Gaming Industry Association and John Iverson of the Montana Tavern Association said SB 555 helps protect licensed Montana businesses and tax revenues from unscrupulous offshore operators offering untaxed gambling. Rhonda Wiggers of the Montana Coin Machine Operators Association said existing law offers only modest penalties, and stronger measures are needed to deter repeat offenders.

Committee members pressed DOJ on enforcement capacity and fiscal implications. Johnson said the division had pursued dozens of cases and that multi-state coordination helps; he estimated fines and penalties collected over a recent three-year period at roughly $23,000 and described that as a modest revenue stream intended to fund investigative work if redirected to DOJ.

The committee adopted the sponsor’s amendment removing explicit references to cryptocurrency and voted to pass SB 555 as amended. The bill will next go to the Senate floor as it moves through the legislative process.

The committee record shows no opponents on the hearing record and no request from DOJ for additional FTEs; Johnson said existing staff could handle the work with shifted fine revenue and attorney support.