Lawmakers in Maine have introduced new legislation aimed at eliminating the operation of sweepstakes gaming within the state.
Legislative Document No. 2007, unveiled on Wednesday, specifically targets online sweepstakes casinos and sportsbooks by defining their “dual-currency” operating model as a violation of state law.
The bill classifies these platforms, which simulate games such as poker, bingo, and titles similar to casino releases, as illegal if they utilize a system where players purchase non-redeemable tokens to unlock currency with cash value.
The proposed legislation establishes strict penalties for non-compliance. Operators found promoting or supporting online sweepstakes games would commit a civil violation, facing fines ranging from $10,000 to $100,000.
These collected penalties would be directed to the Gambling Addiction Prevention and Treatment Fund. Furthermore, the bill mandates that any licensee found in violation will have their license revoked and may be barred from future licensing opportunities.
This legislative move is part of a wider national trend, as states like Montana, Connecticut, and California have recently taken similar steps to restrict or ban sweepstakes models.
By clearly defining “direct” and “indirect” consideration, Maine’s proposal seeks to close the legal loopholes that have allowed these operators to function in a gray area.
The rigid language of the bill suggests that state regulators are moving toward a comprehensive prohibition of the vertical.
Text from Legislative Document No. 2007
“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.”
Social and Promotional Games Association (SGLA)
“We strongly disagree with the categorization that Social Plus games that utilize sweepstakes promotions have anything in common with illegal offshore gambling operations.”
