Maine suggests prohibiting sweepstakes operators and imposing fines

Maine is targeting unregulated gambling through sweepstakes websites with a new legislative proposal. The Maine Department of Public Safety introduced measures aimed at operators offering dual currency wagering systems.

Key Points

• The legislation seeks to impose fines and completely prohibit sweepstakes platforms in the state.
• Only federally recognized tribes in Maine are allowed to conduct gambling activities.
• The proposal specifically addresses companies using dual-currency systems, where players buy virtual tokens that can be converted into real cash rewards, categorizing them under the sweepstakes framework.
• Violators could face penalties of up to $100,000.

This move aligns Maine with a growing national trend to regulate unlicensed gambling platforms, which critics argue compete unfairly with state-approved sportsbooks. Maine launched its sports betting market in late 2023, primarily through partnerships between federally recognized tribes and operators like DraftKings and Caesars Sportsbook. Attempts to expand into iGaming have so far stalled.

Unlicensed sweepstakes platforms such as Rebet, Novig, and ProphetX have been operating in Maine, though regulators warn players that they cannot offer assistance in disputes. Milton Champion, director of the Maine Gambling Control Unit, previously advised residents to avoid these platforms, emphasizing that participation carries personal risk.

The proposed bill will now go to the Legislatures gambling committee. Committee co-chair Laura Supica has expressed support for closing loopholes while stressing the importance of careful regulation as online gaming continues to grow.

New York Takes Similar Steps

New York is also addressing sweepstakes platforms. Governor Kathy Hochul has received a bill that would ban online sweepstakes casinos, with a 30-day window for approval or veto. If no action is taken, the bill automatically becomes law on New Years Eve.

The legislation, supported by Senator Joseph Addabbo, passed the state legislature earlier this year. It defines sweepstakes as online games using dual-currency systems that simulate casino-style games such as slots, poker, bingo, lottery games, and sports wagering. The bill also prevents payment processors, geolocation companies, media affiliates, and suppliers from supporting sweepstakes activity.

If enacted, New York would join states including California, New Jersey, Nevada, Connecticut, and Montana in banning online sweepstakes platforms. Industry groups have criticized the legislation, arguing it could negatively impact the economy. A study cited by the Social Gaming Leadership Alliance estimates that sweepstakes casinos in New York generated $762 million in sales in 2024, with an overall economic impact of $230 million.

Author: Jackson Miller