(AsiaGameHub) – Maine follows Indiana as the second state this year to prohibit online sweepstakes casinos, a move finalized when Gov. Janet Mills signed LD 2007 into law on April 6.
Following the governor’s approval, the legislation has been enacted as Chapter 645 of Maine public law. It bans the promotion and operation of online sweepstakes games that employ a dual-currency system to mimic casino-style offerings, including slots, poker, bingo, lottery games, and sports betting.
Regulators in Maine now possess enhanced enforcement mechanisms to target these digital platforms, reflecting growing national momentum against sweepstakes casinos.
The legislation, titled “An Act Regarding the Prohibition of Online Sweepstakes Games,” focuses on the dual-currency framework utilized by many social casinos. These platforms allow users to purchase “gold coins” for entertainment purposes while granting “sweeps coins” that can be exchanged for cash rewards.
This activity is now classified as a civil infraction and is also prosecutable as illegal gambling within the state.
Pursuant to the statute, violators are subject to civil penalties ranging from $10,000 to $100,000. Additionally, licensed gambling operators found in breach of the law face the potential revocation of their licenses and disqualification from future licensure.
The state legislature approved the bill on April 2, and the governor enacted it several days afterward.
The Scope of Maine’s New Legislation
Under the new law, an “online sweepstakes game” is defined as any internet-based contest, game, or promotion accessible via computer, phone, or similar device that utilizes a “dual-currency system of payment” and simulates casino-style gaming.
The statute explains that the dual-currency system employed by sweepstakes casinos is structured to prevent the direct purchase of redeemable tokens. Instead, it incentivizes the purchase of separate products or currency that provide a chance to win cash or cash equivalents.
The law stipulates 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 further clarifies that such behavior amounts to unlawful gambling.
Fines collected under this legislation will be directed specifically to the state’s Gambling Addiction Prevention and Treatment Fund.
Indiana Enacted a Comparable Ban, Yet the Regulation Debate Persists
Maine’s legislation makes it the second state this year to implement a sweepstakes prohibition, following Indiana’s enactment of its own ban via HB 1052, which was signed by Gov. Mike Braun on March 12.
Indiana’s legislation similarly targeted dual-currency sweepstakes platforms that mimic casino-style games and established penalties of up to $100,000.
Although the language and structure of the two laws indicate a shared approach to suppressing sweepstakes casinos, Maine’s legislation is more specific in connecting violations to unlawful gambling and the revocation of licenses.
Nevertheless, some argue that prohibiting sweepstakes casinos may not be the most effective strategy for state oversight and consumer protection.
Speaking with CasinoBeats in February, ARB Interactive CEO Patrick Fechtmeyer contended that states should instead regulate and tax the industry, cautioning that bans could simply drive players toward offshore platforms that are out of reach of state regulators.
He remarked:
“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 further warned of the risk of players moving to offshore sites, stating:
“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 both Indiana and Maine having enacted these laws in 2026, this debate is expected to persist as additional states determine whether to outlaw sweepstakes casinos entirely or establish a regulatory framework for them.
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