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Read. Follow. Verify.Montana establishes legal framework and 6.75% tax for internet fantasy sports contests
Last action · May 23, 2025: (S) Died in ProcessSponsor: Forrest Mandeville
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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.
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.
- 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.
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.
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.
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?
How are the licensing fees and taxes collected under the bill distributed?
What protections are required for player funds?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died in committee.
Procedural history
22 actions- May 23, 2025Senate(S) Died in Process
- Apr 7, 2025Senate(S) Missed Deadline for Revenue Bill Transmittal
- Apr 4, 2025Senate(S) Motion
- Apr 2, 2025Senate(S) Fiscal Note Printed
- Apr 2, 2025Senate(S) Fiscal Note Unsigned
- Apr 2, 2025SenateCommittee(S) Tabled in Committee
Show 16 earlier actions
- Apr 2, 2025Senate(S) Fiscal Note Received
- Mar 28, 2025Senate(S) Hearing
- Mar 28, 2025Senate(S) Hearing Canceled
- Mar 27, 2025Senate(S) Hearing
- Mar 26, 2025SenateCommittee(S) Referred to Committee
- Mar 26, 2025Senate(S) 1st Reading
- Mar 26, 2025SenateCommittee(S) Referred to Committee
- Mar 26, 2025Senate(S) Fiscal Note Requested
- Mar 26, 2025SenateIntroduced(S) Introduced
- Mar 25, 2025House(LC) Draft Ready for Delivery
- Mar 25, 2025House(LC) Draft in Assembly
- Mar 25, 2025House(LC) Draft in Final Drafter Review
- Mar 24, 2025House(LC) Draft in Input/Proofing
- Mar 19, 2025House(LC) Draft in Edit
- Mar 19, 2025House(LC) Draft in Legal Review
- 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
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
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
Sources
bills.legmt.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 75)
- Controversy50Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz35Current news / social attention level
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