After recently passing an iGaming bill, Maine is joining a growing number of states that are considering a ban on dual-currency sweepstakes, claiming they are essentially operating as online gaming platforms without a license.
Maine Lawmakers Debate Sweepstakes
Online sweepstakes using dual currency are in the crosshairs of gaming regulators across the nation. Regulators allege that these companies are online casino gaming platforms masquerading as sweepstakes companies.
The issue is that customers must buy “tokens” to play, and when they are finished, they can turn in those “tokens” for cash.
Agencies within the gaming industry assert that these tokens serve solely as a means to evade gaming regulations, yet numerous states have recognized their existence in the market. They contend that they are disobeying state laws by operating and taking money away from gaming companies that pay taxes on their revenues, unlike the sweepstakes companies.
In response, Maine State Senator Craig Hickman has sponsored Legislative Document 2007, which would prohibit the operation or promotion of dual-currency sweepstakes sites in the Pine Tree State.
Maine Gambling Control Unit (MGCU) executive director Milton Champion is a major proponent of the bill and is also advocating a crackdown on prediction markets that have drawn the ire of state gaming agencies across the nation.
US Online Gaming Platforms Support Sweepstakes Ban
It is not surprising that the US licensed sportsbooks are lining up against the sweepstakes platforms operating in their markets. Although only eight states, including Maine, have passed online casino gambling bills, many others that allow mobile sports betting also believe the sweepstakes markets are illegally competing for the same gambling dollar.
However, the sweepstakes companies are not going down without a fight despite being legally banned in several states, including New York, New Jersey, Connecticut, Nevada, Montana, and California.
Maine has yet to vote on the legislation, but Bookmakers Review will continue to monitor this story and report back as it unfolds.
