Maine Lawmakers Move to Ban Dual-Currency Sweepstakes Casinos
Augusta, Maine – State lawmakers introduced Legislative Document 2007 to classify dual-currency sweepstakes casinos as illegal gambling.
LISTEN TO THIS ARTICLE:If enacted, the bill could force dozens of operators out of the Maine market and influence how other states approach the model.
The proposal targets platforms that simulate casino-style games using two forms of virtual currency. One currency is provided free to users, while the second can be redeemed for real-world prizes after gameplay.
Related: Maine Authorizes Tribal iGaming as Sweepstake Scrutiny Grows
Player Protection at the Center of Debate
LD 2007 defines an online sweepstakes game as an internet-based product that mirrors traditional casino outcomes and allows redemption of winnings through a secondary currency system. Lawmakers argue that the structure effectively replicates regulated online gambling without adhering to licensing standards.
During a recent joint committee hearing, DraftKings representatives expressed support for the proposal. The company argued that sweepstakes operators operate outside the compliance framework that licensed gambling businesses must follow, particularly in areas such as age verification and responsible gaming safeguards.
State regulators have echoed those concerns. The Maine Gambling Control Unit has warned that legitimate operators must display state licensing information, something sweepstakes platforms typically lack. Officials have previously opted to warn consumers rather than immediately pursue enforcement action, but LD 2007 signals a shift toward stricter oversight.
If passed, the legislation would create a new section within Maine’s gaming laws specifically prohibiting sweepstakes-style products. Civil penalties could range from $10,000 to $100,000 per violation. With approximately 60 sweepstakes casinos currently accessible in Maine, the financial and operational impact could be significant.
Related: Public Resistance Grows as Maine Weighs Online Casino Bill
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Industry Pushback and National Implications
Sweepstakes operators and their representatives have urged lawmakers to consider regulation instead of prohibition. VGW, the parent company of Chumba Casino and Global Poker, criticized the bill during discussions. Company representatives argued that many users participate without spending money and view the platforms as social gaming experiences rather than traditional gambling.
The Social Gaming Leadership Alliance similarly maintained that its members operate within established consumer-protection norms and contribute economically through employment and technology investment.
However, Maine’s approach differs from proposals in some other jurisdictions that aim to regulate rather than ban sweepstakes models. The state appears poised to pursue a complete prohibition of dual-currency structures.
The broader national context adds weight to Maine’s decision. Illinois recently issued cease-and-desist letters to 65 sweepstakes operators, classifying them as illegal gambling businesses. Utah, Virginia, Iowa, Tennessee, Maryland, Florida, Indiana, and Mississippi have also taken steps to restrict or review similar offerings.
For players, the outcome could determine whether popular sweepstakes platforms remain available. For operators, the bill highlights increasing legal uncertainty around a business model that has grown rapidly in states without fully legalized online casinos.
As the debate continues, Maine’s decision may set a precedent. Lawmakers are not only weighing local consumer protection concerns but also considering how the state fits into a broader national shift toward stricter scrutiny of sweepstakes-style gaming platforms.
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