Maine legislature passes bill banning online sweepstakes casinos

Maine lawmakers have approved legislation that effectively shuts down online sweepstakes platforms that mimic casino gambling, marking one of the clearest state-level crackdowns yet on the fast-growing sector.

Senate Bill 2007 cleared the Legislature on March 26, 2026, after months of committee review and debate. The proposal was submitted by the Department of Public Safety and introduced in the Senate by Sen. Craig Hickman of Kennebec during the 132nd Legislature’s second regular session.

Once enacted, the measure makes it explicit under Maine law that operating or promoting online sweepstakes games constitutes unlawful gambling and exposes violators to both civil and criminal penalties.

Law targets sweepstakes platforms operating in legal gray area

Sweepstakes casinos have grown rapidly across the U.S. by offering games that resemble traditional online casinos while relying on promotional sweepstakes mechanics to argue they are not accepting wagers.

Maine’s legislation is designed to eliminate that gray area by creating a dedicated statutory section that both defines and prohibits online sweepstakes games. Lawmakers said the goal was to prevent companies from using dual-currency promotional models to sidestep existing gambling restrictions.

How Maine defines online sweepstakes gambling

Under the new law, an online sweepstakes game is defined as any internet-based game, contest or promotion that simulates traditional casino products, including slot machines, poker, table games, bingo, lottery-style drawings and sports wagering and can be accessed through smartphones, tablets or computers.

A central feature of the definition is the use of a dual-currency system, in which players participate using either purchased virtual coins or promotional credits that can be redeemed for prizes. The bill explicitly states that this structure falls within the definition of unlawful gambling.

Civil fines and criminal liability introduced

The legislation establishes a two-track enforcement system.

Civil penalties

Operating or promoting an online sweepstakes game is treated as a civil violation carrying fines between $10,000 and $100,000 per violation, with funds directed to Maine’s Gambling Addiction Prevention and Treatment Fund.

Criminal consequences

The bill also amends Maine’s criminal code to clarify that running or supporting an online sweepstakes platform constitutes unlawful gambling, opening the door to criminal prosecution.

Regulators warn consumers about unlicensed platforms

State officials have repeatedly warned residents that sweepstakes casinos operate without oversight or consumer protections. Similar warnings in other states have framed the platforms as risky and potentially deceptive.

In Tennessee, for example, Attorney General Jonathan Skrmetti said in a crackdown on sweepstakes sites that “the only thing you can be sure about with an online sweepstakes casino is that it’s going to take your money,” emphasizing the lack of regulatory safeguards.

While not issued in Maine, the comment reflects a broader concern shared by regulators nationwide that sweepstakes casinos can expose consumers to financial harm without the protections required of licensed gambling operators.

Severe consequences for licensed gambling operators

The law imposes especially strict penalties on companies already licensed to offer gambling in Maine. If a license holder is found to have operated or supported a sweepstakes platform, regulators are required to revoke that license and may bar the company or its executives from obtaining future gambling approvals.

This provision is intended to prevent regulated casinos, suppliers or fantasy sports operators from running sweepstakes products alongside licensed gambling offerings.

Maine joins growing national push against sweepstakes casinos

Maine’s action is part of a broader nationwide shift as lawmakers and regulators move to close what they view as loopholes in gambling laws.

In Indiana, regulators told lawmakers that sweepstakes casinos were operating outside the state’s regulatory framework because of their multi-currency structure, noting that:

it’s nuanced, but we don’t think [they are illegal under current law], which is why we need this legislation.”

That same reasoning, that sweepstakes platforms exist in a gray area not clearly addressed by existing statutes, has driven legislative efforts in multiple states, including Minnesota, Tennessee and Louisiana.

Lawmakers say goal is clarity and consumer protection

According to the bill’s official summary, the measure is intended to clarify that operating or promoting an online sweepstakes game constitutes unlawful gambling under Maine law and to establish additional civil penalties tied to that conduct.

Supporters argued that sweepstakes casinos blur the line between promotional contests and real-money gambling, potentially exposing players to financial risks without the oversight, age verification and responsible-gaming protections applied to regulated operators.

Featured Image: Quintin Soloviev, CC BY 4.0 https://creativecommons.org/licenses/by/4.0, via Wikimedia Commons

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