Gov. Steve Bullock signed a bill Friday for the Montana State Lottery to oversee wagering on sports through kiosks and mobile devices.
Sports betting is happening in eight other states, six of which authorized it after the U.S. Supreme Court allowed it nationwide last year.
Montana officials have estimated sports betting will generate $3.7 million for the state during the first year.
Lawmakers sent the Democratic governor two bills that would have created competing systems. One was the lottery bill, the other would have allowed private businesses to run sportsbooks, kiosks and mobile apps.
Bullock vetoed the second bill. He said in a veto letter that the lottery has existing infrastructure and it ensures a transparent environment.