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Sen. Vince Rickey’s bill to curb offshore online casinos passes committee after crypto language removed
Summary
The Senate Business, Labor and Economic Affairs Committee voted to advance SB 555, which tightens enforcement against offshore online casinos that accept Montana players and avoid state taxes; the committee adopted an amendment removing references to cryptocurrency to avoid conflation with making crypto illegal.
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Sen. Vince Rickey introduced Senate Bill 555 to limit access in Montana to offshore online casinos and give the Department of Justice’s Gambling Control Division stronger enforcement tools.
The bill targets platforms that knowingly accept wagers from Montanans while operating without Montana gambling licenses, with sponsors arguing those sites produce untaxed gambling revenue and undercut licensed Montana operators. "These online casinos described in this bill are illegal in Montana," Sen. Vince Rickey said when he opened the hearing. He told the committee the bill is aimed at operators, not individual players.
Jason Johnson, administrator for the Gambling Control Division, told the committee the measure updates the definition of what counts as "money" used for gambling and would allow DOJ to pursue offshore operators more effectively. Johnson said a misunderstanding in the House—that the bill would make cryptocurrency illegal—caused votes to shift on third reading. "That was the misunderstanding and it went from very supported during second reading to not passing during the third reading for that reason," Johnson said. He and the sponsor agreed to a committee amendment removing references to cryptocurrency to avoid that confusion.
Industry groups including the Gaming Industry Association, the Montana Tavern Association and the Montana Coin Machine Operators Association testified in support, arguing the bill protects consumers and tax revenues. John Iverson of the Montana Tavern Association said the bill "protects businesses that operate in the space of Montana and play by Montana's rules." Shauna Helfert of the Gaming Industry Association said the industry widely supports giving regulators more tools.
Committee members questioned DOJ capacity and fiscal effects. Johnson estimated fines and penalties the division collected over a three-year period at about $23,000 and said the agency has had modest enforcement success using cease-and-desist letters, but often needs intergovernmental help to reach offshore operators. The committee adopted an amendment to strike cryptocurrency references and then voted to pass SB 555 as amended.
The committee advanced the bill to the Senate floor; sponsors said they will pursue an amendment on the floor if further technical changes are needed.
