Maine is moving to restrict online sweepstakes casinos. Legislative Document 2007 (LD 2007), introduced by Senator Craig Hickman, targets dual‑currency models that use two types of coins and allow some players to redeem prizes or cash equivalents. The measure would ban the operation and promotion of such sites in the state, give the Maine Gambling Control Unit (MGCU) authority to set rules, and impose fines and licence revocations on violators.
Why Maine is targeting sweepstakes casinos
Sweepstakes casinos have grown in recent years by offering casino‑style play without being classified as gambling. Players typically purchase a non‑redeemable token, receive bonus sweep coins, and use those to play games that can sometimes be redeemed for prizes or cash. Regulators are now examining this grey area.
Dual‑currency models typically involve two types of coins: a non‑redeemable coin, which is used for play or general engagement, and a redeemable coin, often provided through bonuses or promotions, that can be used for sweepstakes entries and prizes.
Breaking down LD 2007
LD 2007 defines an online sweepstakes game broadly as any game, contest, or promotion offered online that uses a dual‑currency payment system to simulate casino gaming, lottery, bingo, or sports betting. The wide scope is designed to prevent operators from avoiding regulation by changing labels.
The bill also identifies other triggers that qualify a system as dual‑currency. These include blocking direct purchases of redeemable coins or tokens or promoting purchases of non‑redeemable coins while linking them to redeemable play. In short, separating purchased coins from redeemable ones does not exempt a product, if the design encourages spending to access redeemable play, it falls within LD 2007’s scope.
Enforcement measures
Violations under LD 2007 would carry penalties ranging from $10,000 to $100,000 per offence. The money would go to the state’s gaming regulator, with proceeds directed to the Gambling Addiction Prevention and Treatment Fund. The measure applies to both operators and promoters. Anyone found to operate or promote an online sweepstakes game would face mandatory licence revocation by the MGCU or the state’s Gambling Control Board. The bill gives the MGCU authority to establish rules, including definitions, compliance standards, reporting requirements, and investigation procedures. This allows the regulator to adjust guidance as product designs change.
Who could be affected
Platforms that use two currencies, one non‑redeemable and one redeemable through promotions, fall directly under LD 2007, regardless of how they are labelled. Since promotion is also covered, affiliates and licensed marketing partners could face licence revocation if they are connected to prohibited offerings.
Content creators working with sweepstakes casinos through paid partnerships may also be affected. If the promotion meets LD 2007’s definitions, it could create compliance issues, particularly for those holding or relying on state gaming permissions.
Sweepstakes considered illegal gambling
Before LD 2007, the MGCU warned residents that online sweepstakes casinos and similar models are considered illegal interactive gaming in the state, alongside unlicensed online casinos and offshore platforms. The state views these sweepstakes operations as unregulated gambling.
Maine allows certain regulated online activities, such as licensed sports wagering and fantasy contests, under specific rules. Online casino‑style games, including dual‑currency sweepstakes, are treated as illegal unless specifically authorised and regulated. LD 2007 is intended to clarify and reinforce those boundaries.
Governor’s action
Separately, LD 1164 proposes authorising online casino gaming in Maine by granting exclusivity to the Wabanaki Tribes, following the model used for sports betting. If adopted, licensed online casinos would operate under a regulated framework, distinct from the unregulated sweepstakes targeted by LD 2007.
The Legislature passed LD 1164, but Governor Janet Mills did not act before adjournment, sending the measure into the next session for reconsideration. Maine is therefore moving to close unregulated options through LD 2007 while weighing a regulated, tribally anchored online casino market under LD 1164.
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