11 October 2026
The Montana Senate has now approved a major bill to strengthen geofencing and location verification for the state's legal sports betting system, following reports of illicit cross-border wagers being placed from within the state's borders.
How Montana Sports Betting Works Now
Montana's sports betting regulatory model, enacted into law in 2019, allows sports wagering only through the state lottery's platform, and requires bettors to be physically present at an approved sports wagering facility to place bets.
The geolocation-enabled model, which does not allow for statewide mobile betting, intends to restrict access to licensed retailers that can verify an individual's age and location, as well as screen for problem gambling risk.
Why Geofencing Matters in Montana
Geofencing technology creates a virtual geographic boundary, enabling systems to trigger an action when a device enters, exits, or remains within that area.
In the context of sports betting, it is used to ensure wagers are placed within the legal confines of a state's betting territory and from permissible locations, such as an approved sportsbook or casino within state borders.
While geofencing is far from foolproof, it is a key anti-corruption and consumer-protection measure in states like Montana that limit sports betting to licensed locations. It helps to prevent illegal wagers from being placed across state lines, and block offshore or unregulated operators from operating within the state.
What Montana Law Already Prohibits
Several provisions in the state law work to prevent unlicensed gambling.
For instance, § 23-5-122 of the 2023 codified Montana state legislation makes clear that '[s]ports wagering may not be facilitated through a courier, service, or third-party provider.'
Another section prohibits fantasy sports betting by phone or internet.
More broadly, as a Republican state heavily influenced by Christian right politics, restrictions on specific forms of gambling are historically based on constitutional prohibitions.
Gambling Control Division director Dawn Marsh has described the state's regulatory approach as a 'networked web of interlocking laws, penalties, and protocols that intersect to control, monitor, and protect their sports wagering products and players.'
What the Latest Legislative Enforcement Push is Trying to Solve
The most recent push to tighten sports betting geofencing comes after reports of an increase in cross-border wagers being placed from within Montana, against statewide sports betting regulations, according to a legislative sponsor and industry regulators.
More specifically, local retailers have flagged to officials an increase in bettors who check in to a sportsbook, place their wager, and then move to a nearby state in order to watch the game and avoid detection from geofencing technology.
Legislative Aide Wyatt Reibenspies notes that the cross-border fraud issue has impacted state tax revenues, and placed an unbalance on smaller establishments who uphold the law.
The latest legislation would make it a felony for operators to fail to meet requirements for GPS-driven age and geolocation verification, under Montana law.
What to Watch Next for Bettors, Retailers, and Regulators
The bill, which passed the Senate without opposition, is now set to be heard by the House before heading to the desk of Republican Governor Greg Gianforte for final passage.
If signed, the law would put Montana in line with many other states that have drafted heavy penalties for operators found to have circumvented state caps on mobile betting.
The increased focus on geofencing has some retailers and operators advocating for federal geofencing solutions from regulators, to aid in fraud prevention.
Many consumer advocates also now call for a federal uniform system for age and location verification technology.
A top priority for the Montana lawmakers should be educating the public on the legal sports betting risks and waste of betting outside the state system, say many gambling law observers.
Montana's legislature, known for stringent penalties for operators and at times zealous enforcement by regulators, is expected to continue to advocate for a broad legislative effort updating state rules on geofencing.