Maine Authorizes Tribal iGaming as Sweepstake Scrutiny Grows
Maine’s decision to authorize tribal online gambling intensifies pressure on sweepstakes-style casinos operating in the state.
LISTEN TO THIS ARTICLE:Governor Janet Mills allowed Legislative Document 1164 to become law after the legislature passed the measure in June, effectively empowering the Wabanaki Nations to offer regulated online gaming under state oversight. The move follows her earlier decision to pause the tribal iGaming bill in 2025 to allow for additional legislative discussion and public input.
"I considered this bill carefully, and while I have concerns about the impacts of gambling on public health, I believe that this new form of gambling should be regulated. I am confident that Maine’s Gambling Control Unit will develop responsible rules and standards to hold providers of this new form of gambling accountable while ensuring that Maine’s tribes benefit from its operations. It has always been my strong desire to work with tribal leaders to improve the lives and livelihoods of the Wabanaki Nations, and it is my hope that this new revenue will do just that."
The legislation assigns regulatory authority to the Maine Gambling Control Unit and grants exclusivity to the Wabanaki Nations – the Passamaquoddy Tribe at Indian Township, the Passamaquoddy Tribe at Sipayik, the Mi'kmaq Nation, the Penobscot Nation and the Houlton Band of Maliseet Indians – to operate online gambling in Maine. That model echoes arrangements in other US jurisdictions where sovereign tribal compacts play a central role, most notably the Seminole Tribe’s footprint in Florida, which has already led to targeted enforcement actions against unauthorized sweepstakes operations in that state.
Industry analysts say the practical effect of LD1164 is to consolidate legitimate online gaming under tribal authority and a single state regulator, narrowing the space for unregulated operators. "With tribal control and a regulator now tasked with licensing online play, it's difficult for unlicensed sweepstakes operators to survive. Enforcement will follow," said an independent gaming policy consultant who has worked with tribal governments.
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What Lawmakers are Considering Next
While LD1164 creates a regulated path for online gaming, state lawmakers are simultaneously weighing a direct ban on sweepstakes casinos. Legislative Document 2007, which mirrors so-called dual-currency prohibitions enacted in other states, had its first hearing with the Joint Committee on Veterans and Legal Affairs on Jan. 14. The bill would outlaw the sale or distribution of tokens or representations of value redeemable for cash prizes or equivalents – explicitly capturing the promotional tokens commonly called Sweeps Coins.
Under LD2007, operators found in violation would face significant civil penalties, with fines ranging from $10,000 to $100,000 per violation. Proponents argue the measure closes a regulatory loophole that sweepstakes platforms exploit by presenting themselves as promotional or game-of-skill services rather than gambling. Opponents contend an outright ban risks litigation over definitions and interstate commerce, and could spawn enforcement challenges if operators host servers or payment processors outside Maine.
Legal observers point to California’s recent approach to sweepstakes and to Florida’s enforcement led by tribal and state interests as indicators of how this dispute could unfold. In states where tribal gaming is recognized as the primary regulated model, lawmakers and regulators have tended to prioritize tribal compacts and public-safety-aligned licensing over tolerating parallel, unlicensed sweepstakes ecosystems.
For operators and players in Maine, the near-term landscape is one of uncertainty. The Maine Gambling Control Unit must now draft licensing rules and technical standards for online games, while the legislature and the Joint Committee continue to debate the scope of a sweeps ban. If LD2007 advances to the governor’s desk, the political reality of Governor Mills’ support for tribal gaming suggests a veto is unlikely.
Regulators and stakeholders have signaled they will move deliberately. Expect a rulemaking timeline from the Maine Gambling Control Unit in the coming months, public comment periods, and potential legal challenges from affected operators if a sweeps prohibition is enacted. Those developments will determine whether sweepstakes casinos adapt, relocate, or exit the Maine market entirely.
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