Maine Advances Sweepstake Casino Ban to Governor Mills

Maine lawmakers approved legislation last week that would prohibit online sweepstakes casinos, sending LD 2007 to Gov. Janet Mills for final approval after clearing both chambers on March 26. 

The proposal defines sweepstakes casino gaming as online contests using dual-currency systems that mirror casino-style play, including slots, poker, bingo, and sports wagering. The bill provides penalties ranging from $10,000 to $100,000 and establishes clear rules for bought and promotional tokens that are used to access cash-like prizes.  

The bill also clarifies how these sites operate and targets sites that indirectly offer virtual currency before users can cash out prizes. It authorizes regulators to further define dual-currency structures, reinforcing enforcement flexibility.  

Violators would face not only fines but also license revocation if they hold existing gambling approvals in Maine. Those entities would then be barred from reapplying in the future. 

Funds collected through penalties would be directed to the state’s Gambling Addiction Prevention and Treatment Fund. The legislation also amends the Maine Criminal Code, classifying sweepstakes casino activity as unlawful gambling and exposing operators to potential criminal prosecution. 

LD 2007 was introduced by Sen. Craig Hickman to the Senate Veterans and Legal Affairs Committee in December. It passed the Senate with amendments on March 12 and was sent to the House, where lawmakers passed it by a vote of 87-55 on March 26.  

Gov. Mills has previously expressed her opposition to gambling, and a bill to allow state tribes to offer online gambling only passed because she didn't intervene. Against that background, it's likely LD 2007 will have her support. 

Indiana becomes first state to enact 2026 ban on sweepstakes casinos 

Momentum behind these restrictions has already translated into enacted law elsewhere, with Indiana formally banning sweepstakes casinos effective July 1. Gov. Mike Braun signed House Bill 1052 into law this month after it passed the House 87-11 and the Senate 37-8. 

The legislation targets online games and promotions that simulate gambling while using dual or multi-currency systems tied to cash rewards. It specifically references products resembling slots, poker, bingo, table games, lottery formats, and sports betting. Exemptions apply to state lottery offerings and peer-to-peer skill-based poker. 

Under the new law, the Indiana Gaming Commission can impose civil penalties of up to $100,000 against operators offering such products to residents. Earlier drafts included criminal penalties, but lawmakers removed those provisions during the amendment process. 

The bill was also supported by regulators during committee discussions, since the old law did not allow them to act against sweepstakes operators. Regulators said they could not even issue cease-and-desist orders because there was no clear authority under the old law. 

Indiana joins the likes of California, New York, and Connecticut in banning online sweepstakes casinos, bringing the total number of states that have banned sweepstakes up to six.