Maine Moves to Ban Online Sweepstakes Casino Platforms
Maine lawmakers have introduced Legislative Document 2007, a measure designed to ban online sweepstakes casinos that use dual-currency systems to simulate casino gaming without falling under existing gambling regulations. The bill, introduced by Senator Craig Hickman, addresses the rapid rise of sweepstakes operators that rely on non-redeemable purchases paired with redeemable bonus coins, a structure regulators say encourages gambling-like activity.
LD 2007 defines online sweepstakes games broadly to capture any platform using a dual-currency format to mimic casino play, lottery, bingo, or sports betting. This comprehensive approach is intended to prevent operators from avoiding regulation by altering terminology or game design. The bill specifies that separating purchased coins from redeemable ones does not exempt a product if the overall system encourages players to spend money to access redeemable play.
Enforcement provisions within the bill are extensive. Penalties for violations range from $10,000 to $100,000 per offence, with funds directed to Maine’s Gambling Addiction Prevention and Treatment Fund. The Maine Gambling Control Unit would receive expanded authority to set compliance standards, reporting requirements, and investigation procedures, ensuring the regulator can adapt to evolving product models. The bill also mandates licence revocation for any operator or promoter found to be in violation, which may impact affiliates, content creators, and marketing partners working with sweepstakes platforms.
Maine previously issued warnings that online sweepstakes casinos constitute illegal interactive gaming in the state. While tightening restrictions through LD 2007, the state is simultaneously evaluating LD 1164, a separate measure that would authorize regulated tribal online casinos. Together, these developments reflect Maine’s broader efforts to distinguish between regulated online gaming opportunities and unregulated sweepstakes models.
