Maine Debates Ban on Online Sweepstakes Gaming

While New Jersey lawmakers are revisiting whether sweepstakes casinos can fit inside a regulated model, Maine is moving in the opposite direction. State officials and legislators are now weighing a full ban on dual currency online sweepstakes casinos, framing the issue around licensing, enforcement, and consumer protection.

Good to Know

• Maine lawmakers are considering a bill to ban online sweepstakes casinos
• State regulators label dual currency platforms as unlawful gambling
• Industry voices are split between licensed operators and sweepstakes companies

Maine Lawmakers Hear Arguments for a Sweepstakes Casino Ban

Maine legislators held a bicameral hearing Wednesday to review a proposal that would prohibit online sweepstakes casinos. Maine Gambling Control Unit executive director Milton Champion urged lawmakers to advance the bill, calling dual currency sweepstakes casinos a form of unlawful gambling operating without state licenses.

Champion told lawmakers that these platforms fall outside the legal gambling structure already in place. Lawmakers did not vote on the proposal during the hearing and plan to revisit the bill, including possible revisions, before deciding next steps.

The discussion places Maine among a growing list of states examining sweepstakes style gaming. Several statehouses across the country are now reviewing whether these platforms should be restricted or removed entirely due to regulatory gaps.

Support for the ban came from licensed operators. Representatives from DraftKings testified in favor of the proposal. DraftKings operates legal mobile sports betting in more than two dozen states, including Maine, and stands positioned to become one of up to four iCasino operators expected to launch in the state later this year.

Kevin Cochran, senior legal and government affairs director at DraftKings, said:

“Maine has taken a step forward in legalizing a framework for online casino gaming that prioritizes consumer protection, responsible gaming, and regulatory oversight. Unregulated sweepstake-style casino platforms operate outside of that framework, drawing players away from licensed operators and undermining the intent of the law.”

Industry Pushback and National Enforcement Trend

Sweepstakes operators pushed back during the same hearing. Lloyd Melnick, chief growth officer at VGW, told lawmakers that most sweepstakes casino players never spend money on the platforms. He described the games as a safer entertainment option compared with offshore operators that would remain active even under a ban.

“Maine can build on its momentum as an enterprising, and forward thinking state where innovators, entrepreneurs, and industry disruptors battle it out in the market,” Melnick said: “That way, residents of Maine have more entertainment options, and it creates fiscal opportunities for the state as the pioneer of social plus games.”

Maine has not yet set a timeline for further action. The state already joined the online casino market last week, becoming the eighth state to legalize real money iCasino gaming.

If lawmakers proceed with a ban, Maine would align with New York, New Jersey, Connecticut, Nevada, Montana, and California, where legislation restricts or bans sweepstakes style gaming. Beyond formal bans, multiple state attorneys general have interpreted existing law as prohibiting these platforms, while regulators in several jurisdictions have issued cease and desist letters warning operators to exit local markets.

FAQ

What is Maine considering banning

The proposal targets online sweepstakes casinos that use dual currency systems.

Why do regulators oppose sweepstakes casinos

State officials argue the platforms operate without licenses and fall outside existing gambling law.

Are online casinos legal in Maine

Yes. Maine legalized real money online casinos last week, making sweepstakes regulation a separate issue.

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