Maine Says No to Sweepstakes Casinos

Maine has taken another step toward establishing tighter regulations on its gambling sector,  becoming one of the latest states to outlaw sweepstakes-style casinos. Earlier this week, Governor Janet Mills signed Legislative Document 2007. The legislation targets platforms that use so-called dual-currency systems to mimic traditional casino offerings. The move places Maine alongside states such as Indiana that have taken steps to shut down this model.

The New Law Introduces Hefty Penalties

Maine lawmakers have been highly critical of sweepstakes casino platforms. Such companies typically offer games that resemble slots or table games, using virtual currencies to facilitate betting. Players may receive free tokens, while additional credits can be purchased with real money. According to regulators, these features, combined with the ability to cash out winnings, create a system that closely mirrors real-money gambling.

The new law establishes fines ranging from $10,000 to $100,000 for operators and promoters of such platforms. The penalties extend beyond standalone sweepstakes businesses, as any licensed gambling operator in Maine found to be involved in promoting or running these platforms risks losing its license. 

According to state officials, the measure closes a regulatory loophole that may have enabled some companies to circumvent gambling regulations. This crackdown is especially relevant given Maine’s plans to launch its regulated online casino market in 2027. Lawmakers aim to ensure that all online gambling companies adhere to the same standards and offer adequate customer protection.

Sweepstakes Casinos Remain Highly Divisive

Critics of the sweepstakes ban argue that the state could be shutting down an entire industry without offering consumers an alternative. The Social Gaming Leadership Alliance (SGLA) claims that the decision will eliminate an affordable entertainment option that has existed in the market for many years, while doing little to generate new tax revenue or improve consumer safety.

Unfortunately, this bill will do nothing to generate revenue for the state nor protect Mainers from exploitative illegal online gambling.

Sean Ostrow, SGLA managing director

Supporters see it differently. They believe that sweepstakes casinos blur the line between gaming and gambling. By eliminating that gray area, Maine can channel players toward a regulated system with clearer rules and oversight. For example, the state’s updated guidelines ban the use of credit cards for online gaming transactions and place a $25,000 cap on bulk lottery purchases, limiting excessive spending.

The debate has also spread beyond Maine. A Maryland bill is envisioning similar restrictions on sweepstakes casinos, proposing criminal penalties for operators who run such platforms. As lawmakers in other states have proposed regulation rather than outright prohibition, US sweepstakes are facing an increasingly fragmented regulatory environment.