Maine Bans Sweepstakes Casinos After Governor Signs LD2007
AUGUSTA, Maine – Governor Janet Mills signed LD2007 into law, banning dual-currency sweepstakes casinos in Maine.
LISTEN TO THIS ARTICLE:The move gives operators using redeemable sweeps coins until early July to change their products or leave the state.
The legislation closes a long-standing loophole used by sweepstakes-style platforms that rely on parallel digital currencies, one for gameplay and another that can be redeemed for prizes or cash equivalents. The law takes effect 90 days after enactment, setting a clear deadline for compliance or market withdrawal.
LD2007 passed the Maine Legislature on March 26, following an earlier push by lawmakers to restrict sweepstakes platforms. The measure makes Maine the second state, after Indiana, to explicitly prohibit these models during the 2026 legislative session.
Law Targets Dual-Currency Mechanics
At the centre of the statute is a detailed distinction between types of digital consideration. The law defines “direct consideration” as any digital currency, including tokens or coins, that users can purchase or receive and then use to play games.
It also introduces “indirect consideration,” which refers to digital currency provided at no cost through bonuses or promotions but still capable of being converted into prizes or cash. This definition captures the “sweeps coins” widely used by sweepstakes operators, bringing them within the scope of the ban.
The law further prohibits commercial structures where users purchase non-redeemable currency that is bundled with a redeemable counterpart, a system that has underpinned many sweepstakes casino models.
Industry Split During Legislative Process
The measure follows Maine’s broader move toward regulated online casino gaming. In early January, the state approved legislation establishing a licensed iGaming framework focused on consumer protection and oversight.
Licensed operators supported the crackdown on sweepstakes platforms during committee hearings. Kevin Cochran, Senior Director of Legal and Government Affairs at DraftKings, told lawmakers: "With the passage of LD1164 last year and earlier this month, Maine has taken a step forward in legalizing a framework for online casino gaming that prioritizes consumer protection, responsible gaming and regulatory oversight. Unregulated sweepstakes-style casino platforms operate outside of that framework, drawing players away from licensed operators and undermining the intent of the law."
Not all stakeholders agreed. Sean Ostrow, Managing Director of the Social Gaming Leadership Alliance, warned lawmakers that the law could have unintended consequences. He said, "We think if LD2007 passed, the outcome would be pretty predictable. The law-abiding operators, including members of the SGLA, would exit the state, but it would be the illegal operators that stay. They can continue to prey on unsuspecting Maine consumers."
More Regulation
What This Means for Operators and Players
The immediate effect is likely to be a rapid withdrawal of sweepstakes platforms from Maine. Several operators had already begun limiting their exposure to certain states in anticipation of stricter regulatory action.
Operators that choose to remain will need to remove redeemable sweepstakes mechanics from their products or risk enforcement under state law. For players, the change reduces access to unregulated platforms while shifting activity toward licensed operators operating within Maine’s formal regulatory framework.
The transition also places pressure on the state’s regulated market to deliver safe, transparent products that meet consumer expectations previously served by sweepstakes sites.
What Happens Next
State authorities will now move toward implementation, with enforcement details expected to become clearer ahead of the July deadline. Industry groups and some operators have indicated they may explore legal challenges, although no formal action has been confirmed.
As the compliance window narrows, regulators, operators and policymakers in other states are expected to monitor Maine’s approach closely as similar legislation is debated across the United States.
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