Judge in Montana Dismisses the Lottery Law to Limit Betting to Bars and Taverns

Lewis and Clark County District Judge Kathy Seeley joined with Montana's opposition group opposing a Montana Lottery-backed law that aimed to restrict sports betting access. Businesses conducting sports betting in the state must sign up with an alcoholic beverage license to continue taking wagers, according to the disputed law.

The Lottery initially sought to restrict sports betting with the applicable licenses to pubs, taverns, and restaurants. However, counsel Lyndon Scheveck argued in the lawsuit brought by Arete Group that the Lottery had behaved frivolously against House Bill 725 which was signed into law by Montana Governor Steve Bullock in May 2019.

Gov. Bullock had two bills to pick from, but he decided on sticking to HB 725, putting sports betting under the state lottery's remit.

“Not once in that bill does it state that you need a liquor license,” he claimed when he filed the case in January 2020.

However, the Lottery backed that HB 725 required the Montana Lottery to develop and define rules relating to sports wagering and sports wagering licensing of sales agents.

Legislature Didn't Mention Alcoholic Drink License According to Judge

Judge Seeley analyzed the case and found that if the provision for an alcoholic liquor license were the lawmakers' initial purpose, it would have been included in the law that allowed sports betting in the state.

She added that the court would not seek to enforce a clause which was not considered appropriate by the state Legislature. Scheveck was satisfied with the decision, saying it would encourage Montanans to seek commercial ventures and free up money that would otherwise have gone to support the bureaucracy.

Representative of Montana lottery Jennifer McKee said the recent verdict was a major decision and that the company must closely consider its next steps.

Now that the matter has been settled, Scheveck said that he would actively aim to start a company as there will be no issues surrounding permits for alcoholic drinks. Given the state demographic, sports betting in Montana has produced respectable revenue so far.

The legalization of the practice began back in March and has since netted a combined handle of some $9.7 million, with $531,000 of that number flowing to 250 companies.