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Maine has joined the growing list of states pushing to eliminate sweepstakes gaming, with lawmakers unveiling Legislative Document No. 2007 on Wednesday (Dec 3), a proposal that directly targets online sweepstakes casinos and sportsbooks.
The bill, presented by Senator Hickman of Kennebec, defines these sweepstakes as online games that use a “dual-currency system of payment” and simulate casino-style play such as slots, poker, bingo, lotteries, or sports wagering.
The measures make clear 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.” This language leaves little room for operators or affiliates to continue business in the state.
Heavy fines and penalties proposed for violators
Violations of the proposed LD 2007 are set to carry heavy consequences. Operators face fines between $10,000 and $100,000, with all penalties collected by the Gambling Control Unit.
The money is directed into the Gambling Addiction Prevention and Treatment Fund, a dedicated fund established under state law to support prevention programs, treatment services, and research into gambling-related harm.
The bill also ties enforcement to licensing, and any license found in violation will have their license revoked. Individuals or businesses caught promoting sweepstakes games could also be banned from receiving new licenses in the future.
Closing loopholes in payment systems
A major focus of LD 2007 is the way sweepstakes casinos structure payments. The law defines “direct consideration” as coins or tokens purchased or received through promotions, while “indirect consideration” refers to tokens given for free or bundled with other products. Both are treated as gambling when redeemable for cash prizes or equivalents.
The bill further describes a “dual-currency system of payment” as one that prevents players from directly buying redeemable tokens, while encouraging them to purchase non-redeemable items that eventually unlock tokens with cash value.
Hickman has effectively eliminated the gray area sweepstakes operators rely on with his clear definitions on LD 2007, signaling a major blow to these platforms.
No breathing space for sweeps
It’s been one hell of a year for the sweepstakes industry, which has continued to face intense backlash from both stakeholders and state regulators. In May, Montana took the bold step, becoming the first state to officially ban sweeps operations.
Since then, multiple states like Connecticut have followed, with California the latest to join the fray in October. We’ve also seen multiple major exits, like GW and VGW removing sweeps coins from their West Virginia markets and Pragmatic Play pulling its games from the US market completely.
The latest came on Monday, with Rep. Berny Jacque introducing House Bill 591 to ban non-tribe gaming in Florida. While sweeps were not explicitly mentioned, the bill’s language could well be interpreted to include the vertical and even the trade body representing the sector, SGLA, has come out to condemn it, stating,
“We strongly disagree with the categorization that Social Plus games that utilize sweepstakes promotions have anything in common with illegal offshore gambling operations.”
This ongoing patchwork of restrictions continues to limit sweepstakes operators across the country. Maine’s LD 2007 adds another layer to this crackdown with its very clear language and shows that state regulators might have found a solution to what has become a major issue in the last year.
