Maine Moves to Ban Sweepstakes Casinos

Maine just signaled it’s done playing whack-a-mole with “casino-style” sweepstakes sites. The state’s Joint Committee on Veterans and Legal Affairs voted to advance LD 2007, a bill that would explicitly ban online sweepstakes casino games and attach meaningful penalties to operators and promoters. If you’re in gaming, affiliate marketing, payments, or platform supply, this matters because LD 2007 doesn’t only target the operator—it targets anyone who “supports” the ecosystem. Here’s what the bill actually does, why Maine is acting now, and the compliance ripple effects you should expect. Key points (operator-grade)

• LD 2007 advanced out of Maine’s Joint Committee on Veterans and Legal Affairs on Feb. 18, 2026 (reported 8–2).
• The bill bans internet-accessible “online sweepstakes games” using dual currency and casino-style simulation.
• It targets operators, promoters, and supporters—not just the platform running the games.
• Penalties run $10,000–$100,000, with proceeds earmarked for Maine’s gambling addiction prevention/treatment fund.
• Maine’s regulator previously warned that no sweepstakes site is licensed in the state and flagged dual-currency sweepstakes/social casino models.

Maine Draws a Hard Line on Sweepstakes Casinos — LD 2007 Is Now in Motion

What happened: LD 2007 cleared committee on an 8–2 vote

LD 2007 (“An Act Regarding the Prohibition of Online Sweepstakes Games”) was introduced in early December 2025 and, on Feb. 18, 2026, the Joint Committee on Veterans and Legal Affairs voted to advance it (reported publicly as 8–2, with three absentees) and filed a divided committee report. The bill was submitted by Maine’s Department of Public Safety and carried in the Senate by Sen. Craig Hickman.

What LD 2007 bans: “dual-currency” casino-style sweepstakes online

The bill creates a new chapter in Title 8 to prohibit “online sweepstakes games.” It defines them as any internet-accessible game/promo that:

• uses a dual-currency system of payment, and
• simulates casino-style gaming (explicitly including slots, poker, table games, lottery games, bingo, and even sports wagering-style simulations).

It also defines the building blocks of the model—direct consideration and indirect consideration—to capture the mechanics that sweepstakes sites typically rely on (paid “coins” plus bonus “sweeps” entries).

Why Maine is doing this now: the state already warned “no sweepstakes site is licensed”

This isn’t coming out of nowhere. In June 2025, Maine’s Gambling Control Unit (GCU) issued a formal public warning: online casino-style games for real money are prohibited, and no online casino/iGaming/sweepstakes site is licensed by the GCU—calling out “dual-currency systems” and sweepstakes/social casino-style platforms as examples of unlicensed operations targeting residents. So, from Maine’s perspective, LD 2007 is the legislative “sharpening of the knife”: it turns a messy argument (“is this gambling or a promo?”) into a cleaner statutory prohibition with defined terms.

How sweepstakes casinos work (and why lawmakers fixate on “two currencies”)

Industry analysis consistently describes the sweepstakes model as a two-virtual-currency structure:

• A “for fun” currency that can be purchased (often positioned as having no cash value), and
• A sweepstakes currency acquired via promotions/bonuses (including mail-in AMOE), which can be used to play similar games and ultimately redeem for prizes/cash equivalents (subject to verification and terms).

LD 2007’s drafting approach matches that reality: it doesn’t debate marketing language—it targets the functional architecture (dual currency + casino simulation).

Penalties: civil fines, funding earmark, and licensing “nuclear options”

LD 2007 goes beyond a symbolic ban:

• Civil violation fines: $10,000 to $100,000 per violation.
• Money destination: all fines go to the Gambling Addiction Prevention and Treatment Fund.
• License consequences: if a licensee is found in violation (or convicted under the referenced unlawful gambling provisions), the bill requires license revocation and makes violators ineligible for certain Maine gambling licenses.
• Criminal code tie-in: the bill explicitly clarifies that operating/promoting/supporting an online sweepstakes game constitutes “unlawful gambling” under Maine law.

My read: Maine isn’t only trying to stop a product. It’s trying to de-risk enforcement by creating pressure on the entire support chain—marketing, promotion, and facilitation.

The bigger picture: Maine is joining a fast-moving US crackdown trend

Maine’s move fits a broader state pattern: policymakers and regulators increasingly treat sweepstakes casinos as substance-over-form gambling and either ban them outright or tighten definitions to capture the dual-currency mechanism. This matters because, once a few states hard-code definitions, suppliers and promoters can’t rely on “grey ambiguity” as a scalable US strategy. The compliance map becomes more fragmented—and more enforceable. Conclusion The Joint Committee on Veterans and Legal Affairs has voted to advance LD 2007, and that vote is a clear message: Maine wants a bright-line statutory ban on dual-currency, casino-style sweepstakes games—and it wants enforcement tools with teeth, not just guidance memos.

📢 Join the Conversation!

Want to share your thoughts or ask questions about our latest articles? Stay connected and be part of the discussion by joining our Telegram and WhatsApp channels!

🔹 Get real-time updates
🔹 Share insights with industry peers
🔹 Ask questions & get expert answers

👉 Join us on Telegram 👉 Join us on WhatsApp

Let’s keep the conversation going!