Maine has become the second state this year, after Indiana, to ban online sweepstakes casinos, with Gov. Janet Mills signing LD 2007 into law on April 6.
With the governor’s signature on the bill, the measure is now Chapter 645 of Maine public law, prohibiting the operation and promotion of online sweepstakes games that use a dual-currency system and simulate casino-style products such as slots, poker, bingo, lottery games, and sports wagering.
Maine’s regulators now have new enforcement tools to go after the online platforms as momentum continues to build against sweepstakes casinos across the country.
The new law, “An Act Regarding the Prohibition of Online Sweepstakes Games,” targets the dual-currency model many social casinos use. These websites let players buy “gold coins” for social play while earning “sweeps coins” that can be redeemed for cash prizes.
This practice is now categorized as a civil violation and can also be prosecuted as unlawful gambling in the state.
Under the statute, those who violate the law face civil fines ranging from $10,000 to $100,000, while licensed gambling operators found in violation risk losing their licenses and becoming ineligible for future licensure.
The state’s legislature gave the bill final passage on April 2, before the governor signed it into law a few days later.
What Maine’s New Law Does
Maine’s new law defines an “online sweepstakes game” as any internet-based game, contest, or promotion that is accessible by phone, computer, or similar device, uses a “dual-currency system of payment,” and simulates casino-style gaming.
According to the statute, the dual-currency system that sweepstakes casinos use is designed so players can’t buy redeemable tokens directly. Instead, it encourages them to buy separate products or currency that gives them a chance to win cash or cash equivalents.
The law says that “a person that operates or promotes an online sweepstakes game or supports the operation or promotion of an online sweepstakes game commits a civil violation.”
It also goes a step further by adding that this conduct constitutes unlawful gambling.
Any fines the state collects under the new law will be earmarked for the state’s Gambling Addiction Prevention and Treatment Fund.
Indiana Passed a Similar Ban, but Debate Over Regulation Continues
Maine’s move makes it the second state this year to enact a sweepstakes ban after Indiana advanced its own prohibition through HB 1052, with Gov. Mike Braun signing it into law on March 12.
Indiana’s law also targeted dual-currency sweepstakes platforms that simulate casino-style games and authorized penalties of up to $100,000.
Based on the language and structure described in both laws, the two states took similar approaches to cracking down on sweepstakes casinos. However, Maine’s bill is more explicit in tying violations to unlawful gambling and the revocation of licenses.
Still, there is an argument that banning sweepstakes casinos is not the best approach from a consumer protection and state oversight perspective.
In an interview with CasinoBeats in February, ARB Interactive CEO Patrick Fechtmeyer argued that states should regulate and tax the industry instead, warning that bans may simply push players toward offshore platforms beyond the reach of state regulators.
As he put it:
“It’s not really a question of, ‘We ban this industry, and it’s going to go away.’ It’s, ‘Where does that money shift to? How do you capture that?’”
Fechtmeyer also warned that bans could push players toward offshore sites, saying:
“The main risk is that offshore operators won’t stop. You’ll have no ability to capture any tax revenue. More importantly, you’ll have no consumer protection.”
With Indiana and Maine now both on the books in 2026, that argument is likely to keep coming up as more states decide whether to ban sweepstakes casinos outright or build a regulatory framework around them.
