Competitive Bid

What is a Competitive Bid?

When the Department of Revenue’s Cannabis & Alcohol Regulation Division (CARD) determines a quota area is eligible for a license, the competitive bidding process is then used to allow interested parties to bid on the opportunity to apply for an available license. The highest bidder must meet specific requirements when applying for the license.

Before You Bid

Think about how you want to run the business. The information you submit on the bid application is how you must apply for the license. For example:

• If you bid as “John Smith,” you must apply as a sole proprietor, “John Smith.”
• If you bid as an entity such as “John’s Bar, LLC,” you must apply as “John’s Bar, LLC.”

Review the following information before beginning the competitive bidding process. For more detail, see 16-4-401, MCA, and the Competitive Bidding Terms and Conditions (PDF).

• The bidder must be 19 or older. If bidding as an entity, all members must be 19 or older.
• A license issued through competitive bidding is not eligible to offer gambling under Title 23, chapter 5, parts 3, 5, or 6.
• The bidder must create a TransAction Portal (TAP) account and submit the competitive bid form online through TAP before the deadline.

Submitting a Bid

• Submit the bid under the name you want to operate the business under. If you have an LLC and want the license and business to operate under that LLC, use the LLC as the bidder name — not your personal name.
• Submit the bid before the deadline.
• Submit the bid online through TAP. See the Alcoholic Beverage Retail Competitive Bidding Process page for instructions on where to click in TAP.

Timeline

• The Department publishes notice of quota areas eligible for new licenses as they become available.
• The Department will contact the highest bidder if their bid form has deficiencies and will allow the bidder to resubmit the bid form within five (5) business days to correct and resubmit.
• After the bid closes, the Department will notify the winning and unsuccessful bidders.
• Once notified, see After Winning the Bid Apply for the License.

What May Disqualify a Bid

The following is a brief list of what may disqualify applicants from the competitive bidding process. For a detailed list see ARM 42.12.503:

• The competitive bid form is not received on or before the deadline.
• The bidder is younger than 19.
• The bid amount is less than the minimum bid.

After Winning the Bid — Apply for the License

• Submit the Alcoholic Beverage - Gambling Operator Combined On-Premises License Application - Form 5 (PDF) and within 60 days of notification.
• You may request an additional 60 days from CARD in writing.
• The proposed location may not have been licensed for the same license type within the previous 12 months.
• The information on the application must match the information on the bid form.
• You must pay the bid amount when CARD is ready to approve the application.
• You must commence business within one year of CARD’s notification of winning the bid.

After the License is Approved

• Transfer of ownership is not allowed for one year, unless it is due to the death of an owner.
• The licensed premises must be operational within one year of the department’s notification of being the highest bidder.
• Nonuse status is not available for five years.

Legal References

All licensees must comply with all federal and Montana alcoholic beverage laws and rules. See sections 16-4-105, 16-4-201, 16-4-401, and 16-4-430, MCA, and ARM 42.12.501, 42.12.502, 42.12.503, 42.12.504, and 42.12.505.

Updated August 2025. Please note the information in department communications may have been modified, superseded, or made obsolete by changes in federal or state law or the Administrative Rules of Montana. To verify the current validity of any Department of Revenue communication, please contact us at DORCARDEducation@mt.gov.