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Maine’s debate over sweepstakes casinos has moved from theoretical discussion to legislative action. On Feb. 18, the Joint Committee on Veterans and Legal Affairs voted 8-2 to advance LD 2007, a bill that formally defines online sweepstakes-style gaming as “unlawful gambling” under the Maine Criminal Code.
Legislation faces final Senate review
The legislation now heads to the full Senate for further review. While three committee members were absent during the vote, their presence would not have altered the bill’s advancement. If signed into law, the measure would prohibit the operation or promotion of dual-currency sweepstakes platforms within the state.
Legislative analyst Rachel Olson told lawmakers that the bill’s primary purpose is clarification. It specifies that these games fall under illegal gambling definitions, with proposed civil penalties ranging from $10,000 to $100,000. All collected fines would be earmarked for the Gambling Addiction Prevention and Treatment Fund, according to news by Bangor Daily News.
Notably, any licensed gaming operator found in violation would face permanent license revocation.
Dozens of unlicensed operators already active
The hearing highlighted the significant presence of these platforms in Maine. Milton Champion, executive director of the Maine Gambling Control Unit, estimated that approximately 60 sweepstakes casino operators are currently accessible to Maine players.
While no cease-and-desist letters have been issued yet, Champion previously issued a public warning in June advising residents that any site not displaying official Maine Gambling Control Unit authorization is unregulated.
Champion described the mechanics of these sites as a “dual-currency system.” Users often purchase “gold coins” for social play but receive separate “sweepstakes coins” that can be redeemed for cash or gift cards. According to a news post by Legal Sports Report, lawmakers expressed concern that this model mirrors regulated online gaming without providing necessary consumer safeguards.
Industry pushback and major operator support
Representatives from the sweepstakes industry argued that their products are promotional in nature, not gambling. Derek Brinkman, an advisor for Virtual Gaming Worlds (VGW), testified that prize redemptions stem from marketing promotions and do not involve direct consideration of prize outcomes.
However, the bill received unexpected support from DraftKings, which currently operates legal sports betting in Maine through a partnership with the Passamaquoddy Tribe. DraftKings representatives argued that regulating online gaming provides state revenue and sets consumer protections that “illegal” markets lack.
Credit card ban and fantasy sports updates
The committee also addressed other gaming measures:
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LD 2080 (Credit Card Ban): Advanced with a 10-2 vote. This bill would prohibit the use of credit cards for sports betting deposits. A key amendment clarifies that “digital wallets” (such as Apple Pay) may only be used if the provider can ensure the funds did not originate from a credit card.
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LD 2048 (Fantasy Sports): Lawmakers voted 11-0 against this measure, which sought to expand licensing and background check requirements for fantasy operators. Members cited a lack of urgency given that only five licensed operators currently exist in the state.
