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Montana establishes legal framework and 6.75% tax for internet fantasy sports contests

Original title: Revise fantasy sports laws

Last action · May 23, 2025: (S) Died in ProcessSponsor: Forrest Mandeville

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Senate Bill 551 legalizes and regulates internet fantasy sports contests in Montana, requiring providers to obtain a Department of Justice license, pay an initial $5,000 fee, and submit to a 6.75% tax on adjusted revenues. The measure establishes strict player eligibility rules, mandating that participants be at least 18 years old and prohibiting credit card payments or participation by real-world athletes and officials. Additionally, the legislation outlines comprehensive background checks, confidentiality rules for licensee records, annual audits, and civil penalties for non-compliance.

Why it matters

The measure creates a new, state-regulated commercial market for online fantasy sports operators, directly changing the legal status of online gaming for residents while generating general fund revenue from licensing fees and contest taxes.

Background
  • K. Bogner is a recognized state political figure who is part of the legislative network involved in sponsoring Montana state bills. context
  • Montana regulates gambling activities tightly through the Department of Justice, requiring explicit statutory authorization for any new forms of betting or contests under state constitutional provisions. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Internet fantasy sports contest service providers

Providers must obtain a license from the Department of Justice, pay initial and renewal fees, pay a 6.75% tax on adjusted revenues, undergo annual audits, and comply with operational restrictions.

Directly affected

Internet fantasy sports contest players

Players must verify they are 18 years or older, are prohibited from using credit cards to make payments, and benefit from player fund reserve protections.

Directly affected

Department of Justice

The department is granted supervisory jurisdiction, rulemaking authority, background check responsibilities, and enforcement powers over internet fantasy sports contests.

Key Facts

  • Internet fantasy sports contests are legalized when operated by providers licensed by the Department of Justice.
  • A 6.75% tax is imposed on internet fantasy sports contest adjusted revenues received each fiscal year.
  • Applicants for an initial license must pay a $5,000 fee, and annual renewals cost $1,000 or $5,000 depending on prior-year adjusted revenues.
  • Players must be at least 18 years of age to participate, and credit card payments for contests are prohibited.
Show all 9 facts
  • Service providers must maintain a reserve or aggregate player funds in cash, cash equivalents, letters of credit, bonds, or processor reserves for player protection.
  • Applicants and board members must submit fingerprints for a national criminal background check conducted by the FBI and Department of Justice.
  • Licensees must submit an annual audit of their total operations conducted by a licensed accountant within 180 days after the end of their fiscal year.
  • A civil penalty of up to $1,000 per violation, capped at $10,000 for violations arising from the same transaction, applies for willful non-compliance.
  • Real-world athletes, coaches, and officials involved in games subject to fantasy contests are restricted from entering contests based on their sport's statistics.

Frequently Asked Questions

Who is eligible to play internet fantasy sports contests under this bill?
An internet fantasy sports contest player must be at least 18 years of age. Real-world athletes, coaches, and officials are prohibited from entering contests where outcomes depend on statistics from the games they participate in, and service provider employees and their household relatives are barred from cash-prize contests on their own platform.
How are the licensing fees and taxes collected under the bill distributed?
All initial license fees, renewal fees, and regulatory fees collected by the department—along with the 6.75% tax on adjusted revenues—are deposited into the state general fund.
What protections are required for player funds?
Licensees must aggregate player funds from operational funds or maintain a reserve in cash, cash equivalents, irrevocable letters of credit, payment processor reserves, or bonds matching the total amount of deposits in player accounts.

What else do you want to know?

News Coverage

Where This Stands

This bill did not become law - Died in committee.

Procedural history

22 actions
  1. May 23, 2025Senate
    (S) Died in Process
  2. Apr 7, 2025Senate
    (S) Missed Deadline for Revenue Bill Transmittal
  3. Apr 4, 2025Senate
    (S) Motion
  4. Apr 2, 2025Senate
    (S) Fiscal Note Printed
  5. Apr 2, 2025Senate
    (S) Fiscal Note Unsigned
  6. Apr 2, 2025SenateCommittee
    (S) Tabled in Committee
Show 16 earlier actions
  1. Apr 2, 2025Senate
    (S) Fiscal Note Received
  2. Mar 28, 2025Senate
    (S) Hearing
  3. Mar 28, 2025Senate
    (S) Hearing Canceled
  4. Mar 27, 2025Senate
    (S) Hearing
  5. Mar 26, 2025SenateCommittee
    (S) Referred to Committee
  6. Mar 26, 2025Senate
    (S) 1st Reading
  7. Mar 26, 2025SenateCommittee
    (S) Referred to Committee
  8. Mar 26, 2025Senate
    (S) Fiscal Note Requested
  9. Mar 26, 2025SenateIntroduced
    (S) Introduced
  10. Mar 25, 2025House
    (LC) Draft Ready for Delivery
  11. Mar 25, 2025House
    (LC) Draft in Assembly
  12. Mar 25, 2025House
    (LC) Draft in Final Drafter Review
  13. Mar 24, 2025House
    (LC) Draft in Input/Proofing
  14. Mar 19, 2025House
    (LC) Draft in Edit
  15. Mar 19, 2025House
    (LC) Draft in Legal Review
  16. Oct 31, 2024House
    (LC) Drafter Assigned

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Establishment of Online Fantasy Sports Regulation

The bill explicitly integrates online fantasy sports into Montana's existing gambling framework, moving it from unaddressed status to licensed oversight under the Department of Justice.

Connected Entities

Department of Public Health and Human Services, Federal Bureau of Investigation, Department of Justice and 1 more
OrganizationDepartment of Public Health and Human Services“Authorizes the statewide telephone number to provide problem gambling informatio”Map →
OrganizationFederal Bureau of Investigation“Receives applicant fingerprints for national criminal background checks.”Map →
OrganizationDepartment of Justice“Has jurisdiction over and shall supervise internet fantasy sports contests and s”Map →
OrganizationBoard of Horseracing“Maintains oversight of parimutuel wagering and advance deposit wagering hub oper”Map →

Sources

Open source document

bills.legmt.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 75)
  • Controversy50
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz35
    Current news / social attention level

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