Maine Positioned as Next Battleground for Sweepstakes Ban

The Legislative Attack: LD 2007

Senator Craig Hickman introduced Legislative Document 2007, also filed as SP 825, to close what officials view as a regulatory loophole.

The bill targets the specific financial structure used by sweepstakes casinos and sports prediction sites. These platforms typically sell a virtual currency that has no monetary value but provide a second currency, often called “Sweeps Coins,” as a free bonus. Players use this secondary currency to play games and redeem winnings for cash.

The proposed legislation redefines this transaction. It classifies the model as a system allowing participation in games of chance for “indirect or direct payment.”

Under the new text, this exchange constitutes illegal gambling. The bill explicitly bans any online contest, bingo game, or sports prediction market that utilizes this dual-currency mechanic to simulate casino-style gaming without a state license.

Financial Penalties and License Revocation

The consequences outlined in LD 2007 are severe and designed to strip the industry of its economic viability. A violation of the proposed ban would be treated as a civil offense.

The text sets fines ranging from $10,000 to $100,000 for every individual violation. Lawmakers intend to funnel proceeds from these penalties directly into the state’s Gambling Addiction Prevention and Treatment Fund.

The bill also leverages Maine’s existing regulated market to enforce the ban. The Maine Gambling Control Unit (MGCU) would receive a mandate to revoke the license of any authorized operator that facilitates sweepstakes gaming.

This puts legal sportsbooks and vendors at risk if they partner with or promote sweepstakes platforms. The provision extends to marketing affiliates and content creators, effectively severing the advertising networks that drive traffic to these sites.

Regulatory Hostility

State regulators initiated action against the industry before the bill even reached a vote. MGCU Director Milton Champion issued public warnings categorizing sweepstakes websites as “illegal interactive games.” The agency’s advisory places these platforms in the same category as unlicensed offshore casinos.

The regulator specifically named operators such as Rebet, Novig, and ProphetX in its communications. Champion emphasized that the state offers no consumer protection for users on these sites. If a player faces a payout dispute or suspects game manipulation, the MGCU has no legal authority to intervene.

This stance contrasts with the industry’s defense. The Social Gaming Leadership Alliance (SGLA) argues that their model functions as legal, free-to-play sweepstakes. The trade group urged legislators to adopt a taxation framework rather than a total ban, warning that prohibition would cost the state potential revenue.

Following the New York Actions

Maine’s legislative move aligns with a broader national trend. The proposal in Augusta shares key similarities with the law recently enacted in New York.

Governor Kathy Hochul signed Bill S5935A on December 6, which imposed identical fines of up to $100,000 for dual-currency operations. The New York ban took effect immediately, forcing companies like Novig and ProphetX to terminate services in the state over the weekend.

The events in New York serve as a blueprint for Maine’s expected trajectory. New York joined California, Montana, and Connecticut in prohibiting the model.

With Indiana also considering felony charges for sweepstakes operators in 2026, Maine represents a critical front in the expanding regulatory crackdown.