Skip to content
iGaming Times

Independent industry intelligence in your inbox. We will email you a link to confirm your subscription, and every newsletter carries a one-click unsubscribe link.

Sub-national
North America

United States - Montana: gambling regulation and licensing

Part of United States

  • Online sports bettingMonopoly
  • Online casinoProhibited
  • Online pokerProhibited
  • Social casinoRegulated
  • Horse race bettingRegulated
  • Land-based (reference)Regulated
  • Prediction marketsGrey market
Regulator
Montana Department of Justice, Gambling Control Division
Headline tax
Not yet verified
Licence required
Yes
Last verified
13 Sept 2026

Summary

Montana has one of the oldest and most distinctive gambling regimes in the United States, and almost none of it is online. There are no casinos. Gambling is a network of licensed premises, most of them bars and taverns, each holding a Department of Justice gambling operator licence and running video gambling machines whose gross income is taxed at 15% and paid into the general fund. Sports wagering arrived in 2019 not as a licensed market but as a lottery product: the Montana Lottery runs Sports Bet Montana through licensed sales agents, and the statute is explicit that a sports wagering licence covers mobile wagering only when it is initiated and received within the physical confines of the single approved facility, enforced by location services. A bettor can use the app, but only while standing in a licensed premises. Online casino and online poker are prohibited outright: the code defines online casinos as internet gambling and says so in terms, carving out only currency-free social games, advance deposit wagering on horse racing and the lottery itself. The minimum age is 18 and wagers cannot be placed on credit. Montana's significance to the wider industry in 2026 is as an early front in the prediction-markets dispute. The Gambling Control Division told Kalshi in March 2025 that its sports event contracts were illegal gambling under Montana law, repeated the demand in April 2026, and Kalshi sued the Attorney General in federal court, where its request for an injunction was reported denied.

Common pitfalls

Reading 'mobile sports betting' in Montana as statewide. The app works only inside a licensed premises; there is no remote market to enter.

Key facts

Regulator
Montana Department of Justice, Gambling Control Division (GCD)
Regulator type
Sub-national body
Headline tax
Not yet verified
Licence required
Yes
Minimum age
18+
Tax base
No online operator tax exists because there are no private online operators. Land-based: a video gambling machine tax of 15% of the aggregate gross income from all machines, paid by the licensed machine owner to the department and deposited in the general fund (23-5-610). Sports wagering is a lottery product and its proceeds flow through the lottery rather than an operator tax.

Licensing

Licence required
Yes
Application window
Not yet verified
Local establishment required
Not yet verified
Local server required
Not yet verified
Barriers to entry
There is no private online operator licence of any kind. Sports wagering belongs to the lottery, and a sports wagering facility must already be a Department of Justice licensed gambling operator, so the market is a network of physical premises rather than an online one.

Licence types

  • Gambling operator licence (Department of Justice)

    Scope
    Required to make a gambling device, including video gambling machines, available to the public for play.
    Fee basis
    A licence application processing fee set to cover the department's actual cost, refunded or supplemented against the true cost (23-5-177(8)); no fixed statutory amount.
  • Sports wagering licence (Montana Lottery sales agent)

    Scope
    Authorises a lottery location, itself licensed as a gambling operator under Title 23 chapter 5, to operate Sports Bet Montana equipment and on-premises mobile wagering.

Taxation

Headline GGR tax
Not yet verified
Effective date
Not yet verified
Tax base
No online operator tax exists because there are no private online operators. Land-based: a video gambling machine tax of 15% of the aggregate gross income from all machines, paid by the licensed machine owner to the department and deposited in the general fund (23-5-610). Sports wagering is a lottery product and its proceeds flow through the lottery rather than an operator tax.

Compliance

Minimum age
18+
National self-exclusion
Not yet verified
Central monitoring system
Sports wagering equipment must be connected to the state lottery central gaming system (23-7-103).
KYC requirements
Not yet verified
Stake limits
Not yet verified

Minimum age by vertical

  • Online sports betting: 18+

Payments

Credit card ban
Yes
Crypto stance
Not yet verified
Permitted methods
cash, cheque, debit card
Currency restrictions
Lottery tickets and sports wagers may be purchased only with cash, cheque or debit card, and may not be purchased on credit (23-7-302).

Enforcement

ISP blocking
Not yet verified
DNS blocking
Not yet verified
Payment blocking
Not yet verified
App store takedowns
Not yet verified
Operator liability
The Gambling Control Division issues cease-and-desist notices to operators it considers to be offering illegal gambling to Montanans, and has done so twice to Kalshi over sports event contracts.

Notable actions

  • KalshiEX LLC12 Apr 2026

    Kalshi sued the Attorney General and state gaming officials in the District of Montana after cease-and-desist notices dated 26 March 2025 and 9 April 2026 (dates per press reports); preliminary injunction motion filed 21 April 2026 and reported denied.

Timeline

  1. 3 May 2019

    House Bill 725 (Ch. 284, L. 2019) authorises the Montana Lottery to conduct sports wagering through licensed sales agents.

  2. 26 Mar 2025

    Gambling Control Division issues its first cease-and-desist notice to Kalshi over sports event contracts (date per press reports).

  3. 12 Apr 2026

    KalshiEX LLC v. Knudsen filed in the District of Montana.

Outlook

Nothing in the current statute opens a private online market, and no bill to do so has been enacted. The live question is the Kalshi case in the District of Montana and how it lines up with the Sixth Circuit's Tennessee and Ohio appeals; a ruling that state gambling law reaches CFTC-listed sports contracts would settle Montana's position, and one the other way would leave the lottery's on-premises monopoly competing with a nationwide app.

Frequently asked questions

Is online sports betting legal in Montana?
Only through the Montana Lottery's Sports Bet Montana, and only while inside a licensed sports wagering facility. The statute limits mobile wagering to the physical confines of the approved premises, enforced by location services. There is no private operator licence.
Is online casino legal in Montana?
No. Montana Code 23-5-112 defines online casinos as internet gambling and states that they are prohibited. Social casinos that do not accept currency of any kind are permitted.
Who regulates gambling in Montana?
The Department of Justice's Gambling Control Division licenses gambling operators and video gambling machines. The Montana Lottery, under the State Lottery and Sports Wagering Commission, runs sports wagering.
How is gambling taxed in Montana?
Video gambling machine gross income is taxed at 15% and paid into the general fund. There is no online operator tax because there are no private online operators; sports wagering is a lottery product.
What is Montana's position on prediction markets?
The Gambling Control Division treats sports event contracts as illegal gambling and has issued cease-and-desist notices to Kalshi. Kalshi's federal challenge, KalshiEX LLC v. Knudsen, was filed in April 2026 and is pending.

iGT coverage of United States - Montana

Nevada court upholds block on kalshi as legal battle spreads across america
Prediction Markets

Kalshi Loses in Washington Again and Asks the Supreme Court for 30 More Days

A King County judge has refused to revisit the injunction that keeps Kalshi's sports, election and entertainment contracts out of Washington, rejecting the argument that rivals are still operating there. In the same week Kalshi asked for 30 more days on New Jersey's Supreme Court petition and Montana agreed to stand down until the Ninth Circuit rules en banc.

Sources

  1. Tier 1Accessed 13 Sept 2026
  2. KalshiEX LLC v. Knudsen, No. 6:26-cv-00028 (D. Mont., filed 12 April 2026), docket

    United States District Court for the District of Montana, via CourtListener (RECAP)

    Tier 1Accessed 13 Sept 2026Published 12 Apr 2026
  3. Kalshi files lawsuit against Montana Department of Justice

    Bozeman Daily Chronicle

    Tier 2. Used only for the cease-and-desist dates (26 March 2025 and 9 April 2026) and the reported denial of Kalshi's preliminary injunction; the order itself was not in the public RECAP archive at the accessed date.

    Tier 2Accessed 13 Sept 2026

Spotted something out of date? Report a correction.

This page is industry reference information and not legal advice.

Cookie Preferences

Choose which cookies you want to accept. Essential cookies are required for the website to function properly.

Required

Necessary for the website to function. Cannot be disabled.

Help us understand how visitors interact with our website.

Used to deliver relevant advertisements and track ad performance.

Remember your preferences and settings for a better experience.