Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioMaine is moving to outlaw online sweepstakes casinos after lawmakers introduced a new bill for the 2026 session, advancing a crackdown that began when regulators warned earlier this year that the platforms are illegal in the state.
The Department of Public Safety submitted via sponsor Sen. Craig Hickman, Legislative Document 2007 (LD 2007), “An Act Regarding the Prohibition of Online Sweepstakes Games.” The measure was referred to the Veterans and Legal Affairs Committee.
The proposal creates a new chapter in Maine’s gaming statutes, dedicated to online sweepstakes games. It defines the sector broadly and positions it within the state’s criminal prohibition on unlawful gambling.
What the Bill Would Do
LD 2007 targets the dual-currency model used by sweepstakes casinos and similar platforms.
The bill defines an “online sweepstakes game” as any internet-based game or promotion that uses a dual-currency system and offers casino-style outcomes. This includes products available on mobile phones, computers, or similar devices.
The proposal goes further by creating specific definitions for direct and indirect consideration. It captures both the purchase of play tokens and the common practice of bundling redeemable sweepstakes entries with non-redeemable virtual coins or other products.
The language is designed to eliminate the legal distinction that sweepstakes operators rely on. It treats both paid and “free-to-play-but-redeemable” systems as forms of gambling.
A key provision allows regulators to define “dual-currency systems” through rulemaking. That gives the Gambling Control Unit (GCU) the flexibility to respond to evolving product designs that attempt to circumvent statutory definitions.
Fines, License Revocation, and Criminal Exposure
LD 2007 introduces a new civil violation for operating or promoting an online sweepstakes game, carrying fines between $10,000 and $100,000. All proceeds would fund Maine’s Gambling Addiction Prevention and Treatment Fund.
The bill also imposes penalties for regulated gambling companies. Anyone found to have operated or supported a sweepstakes game would be barred from holding a gambling-related license in the future.
For existing licensees—including casinos, horse racing operators, fantasy sports operators, and charitable gaming organizations—the penalties escalate to mandatory license revocation.
LD 2007 also amends the state’s penal code to specify that operating, promoting, or supporting online sweepstakes games constitutes unlawful gambling. That change would expose sweepstakes operators to both administrative penalties and existing criminal enforcement tools.
Bill Follows June Warning That All Sweeps Sites Are Illegal
The legislative push follows the GCU’s public warning, urging residents to avoid unlicensed online casinos, including sweepstakes casinos.
In the June statement, the regulator said that “no online casino, iGaming, or sweepstakes site is licensed by the Gambling Control Unit.” It warned that consumers who engage with them “do so at their own risk.”
The GCU referred to dual-currency sweepstakes casinos as “illicit iGaming.” It noted that it has no authority to resolve consumer disputes involving unregulated operators.
LD 2007 effectively codifies that position. It provides the state with a dedicated statutory framework to address the same concerns highlighted in the bulletin.
The GCU currently lacks statutory authority to license or regulate online casino-style gaming. That limits its enforcement to issuing warnings rather than formal oversight.
Maine is Also Weighing Legal Online Casinos in 2026
The sweepstakes casino crackdown arrives as Maine is weighing whether to legalize tribal-controlled online casinos.
LD 1164, an iGaming bill passed earlier this year, would allow the state’s four federally recognized tribes to partner with commercial operators and offer online casino games. The tax rate would be 18%.
While the Legislature passed the bill, Governor Janet Mills declined to sign or veto it before adjournment. The inaction prevented it from becoming law in 2025. Still, the measure carries over to the 2026 session.
Once the Legislature reconvenes in January 2026, the governor will have three days to sign, veto, or take no action on the bill. If she fails to act again, the bill will automatically become law.
Part of National Trend Toward Prohibition
Maine’s proposal enters a fast-moving national landscape. In 2025, six states—including California, Montana, Connecticut, New Jersey, Nevada, and New York—implemented bans or sweepstakes-specific prohibitions.
Meanwhile, prohibition bills tied to online casino legislation in Ohio and Massachusetts will carry over from 2025 into 2026. Even if lawmakers don’t consider iGaming, a separate proposal prohibiting sweepstakes might emerge.
Next year, more states are likely to follow the path of prohibition. In Florida, lawmakers have pre-filed two bills that would effectively ban sweepstakes casinos.
Elsewhere, states where bills in 2025 failed could see the efforts reintroduced. In both Mississippi and Maryland, the Senate passed a bill, but it failed in the House. Meanwhile, Louisiana’s governor vetoed a bill that passed in both chambers.
Furthermore, a proposal in Arkansas was withdrawn by its sponsor, so it could resurface in 2026.
Other states where regulators or attorneys general have been actively targeting sweepstakes casinos could also see a legislative push. Some examples include Delaware, Arizona, West Virginia, and Minnesota.
What Comes Next
LD 2007 now heads to committee review in 2026. There, lawmakers will likely hear testimony from regulators, operators, tribal representatives, and consumer-protection advocates.
With the GCU already on record stating that no sweepstakes platforms are legal in the state, the bill provides legislators with a clear path to formalize that position as Maine’s 2026 session begins.
