A new bill is set to outlaw sweepstakes companies operating with dual currencies in Maine. The legislation is expected to pass when the lawmakers convene in 2026.
Sweepstakes on the Outs
Maine State Senator Craig Hickman, on behalf of the Department of Public Safety, submitted Legislative Document 2007 (LD 2007), which criminalizes sweepstakes platforms operating in the Pine Tree State. The bill is expected to enjoy bipartisan support and is simply another state taking aim at sweepstakes companies it believes are circumventing gambling laws.
Sweepstakes companies operate online and offer digital slots that can initially be free, but if a customer wants to continue, they are forced to purchase tokens that can be turned into cash if a prize is won.
Sweepstakes platforms operate very similarly to online gambling casinos, except for the fact that tokens are purchased as an intermediate step between playing directly with cash.
LS 2007 defines an “online sweepstakes game” as an internet-based game or promotion with a dual-currency system and casino-style outcomes, including those on mobile devices and computers.
Moreover, Maine’s Gambling Control Unit (GCU) is allowed the latitude of defining “dual-currency systems” so that any new wrinkle implemented by the sweepstakes companies to avoid being targeted by the law can be dealt with immediately by the GCU.
The GCU has repeatedly stated that no sweepstakes operators are legal in the state, but putting those words into law is expected to have a major impact on the prevalence of sweepstakes companies in the state and lessen the bite it is taking out of legalized sportsbooks that pay taxes to the state, unlike the sweepstakes operators.
Maine Following Suit
Maine is following the same path taken by many other state gaming commissions in that it is enacting legislation to outlaw sweepstakes companies. This is far more effective than simply releasing a statement and firing a warning shot with no legal teeth.
The bill will now advance to the state’s gambling committee, where it is expected to pass and ultimately reach the floor. Online sports betting is controlled through the state’s Native American tribes in an exclusive partnership with Caesars and DraftKings.
Although Maine has not passed iGaming legislation, which would allow those who are 21 or older and within the state’s borders to play online casino slots or table games, LD 1164, an online casino gaming bill passed earlier this year by the legislature, was neither signed nor vetoed by Governor Janet Mills.
However, this bill will carry forward to the 2026 legislative session and could portend iGaming in the Pine Tree State before too long.
