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Read Full BioMaine’s Senate has approved legislation to ban sweepstakes casinos as the state prepares to launch its legal iGaming market.
Lawmakers passed LD2007 on Thursday, which will now move to the House for consideration. The bill states that, “A person is guilty of unlawful gambling if the person operates or promotes an online sweepstakes game or supports the operation or promotion of an online sweepstakes game.”
It defines an online sweepstakes game as “any game, contest, or promotion that:
A. Is available on the Internet and accessible on a mobile telephone, computer terminal, or similar access device;
B. Uses a dual-currency system of payment;
C. Simulates casino-style gaming, including, but not limited to, slot machines, poker and other table games, lottery games, bingo, or sports wagering.”
Violators would face fines ranging from $10,000 to $100,000. If companies holding gaming licenses are found to promote or operate sweepstakes platforms, they risk having their licenses revoked.
Last year, Maine’s Gambling Control Unit issued a warning against using sweepstakes casinos, stating that users do so at their own risk. With this legislation, the regulator would be empowered to take action against operators.
Maine Launching Online Casinos
The legislation coincides with Maine’s approval of online casinos. Gov. Janet Mills, who originally opposed legalizing iGaming, signed off on a bill at the start of this year.
Mills stated, “I believe that this new form of gambling should be regulated, and I am confident that Maine’s Gambling Control Unit will develop responsible rules and standards to hold providers of this new form of gambling accountable while ensuring that Maine’s tribes benefit from its operations.”
The law gives Maine’s four Wabanaki Nations tribes exclusive rights to online casino licenses, with each able to partner with a third‑party operator.
Maine’s Gambling Control Board opposed the bill and urged Gov. Mills to veto the legislation. The board argued that tribal exclusivity risks damaging the state’s two commercial casinos.
No confirmed, official operator–tribe iGaming partnerships have been announced yet. Rush Street Interactive President and CFO Kyle Sauers said the company sees it as a “great opportunity” for its BetRivers brand to launch in the state.
Caesars also has existing relationships with several Wabanaki tribes through online sports betting, giving it a potential head start in iGaming partnerships.
Sweepstakes Casinos Face Increasing Challenges
Sweepstakes casinos are facing increasing challenges to remain operational across the US. No major companies have withdrawn from Maine as yet, but if the House approves the legislation, then an exodus is likely.
Indiana joined several other states in passing bans on the platforms at the end of last month, which Gov. Mike Braun signed off on this week. Operators have also not yet pulled out of the state, with the ban coming into force on July 1.
In Maryland, lawmakers have yet to vote on any of the four bills introduced to strengthen enforcement against sweepstakes casino operators. The city of Baltimore has taken measures into its own hands by filing lawsuits against major companies, including VGW, Stake, and High 5.
At the same time, Maryland is still considering legislation to legalize online casinos. The seven states with established iGaming markets have largely driven out operators, and with Maine launching online casinos in the near future, the House may well follow the Senate in approving the ban.
