Maine Committee Votes 8-2 in Support of Sweepstakes Casino Ban

Maine is on the cusp of outlawing online sweepstakes casinos following a vote by state officials this week.

The Joint Committee on Veterans and Legal Affairs, which includes members from both the Senate and House of Representatives, voted 8-2 on Thursday to approve LD 2007. The proposal would add Maine to a growing list of states that prohibit sweepstakes operators from operating inside their jurisdictions.

The committee had previously discussed the bill, but did not take it to a vote.

Maine moves to ban sweepstakes casinos

LD 2007 would add a new section to Maine’s gambling laws that both defines and outlaws sweepstakes casinos.

According to the bill, sweepstakes operators are internet-based games or promotions that utilize a dual-currency system. Customers participate in a variety of contests and games that result in casino-style outcomes.

The bill also established punishments for violations of the sweepstakes prohibition. Individuals that were found guilty of operating or promoting these platforms would face civil penalties of $10,000-100,000.

Milton Champion, director of the Maine Gambling Control Unit, said that based on industry outlets, he believes that approximately 60 sweepstakes casinos are operating in Maine. 

He also revealed that Maine has not followed in the footsteps of many other states and issued cease-and-desist orders to these platforms. However, he said the platforms were warned last June that sweepstakes platforms were not approved in Maine.

A national trend

The primary source of controversy related to sweepstakes casinos is their lack of regulation. They exist within a gray area in many states and are not explicitly banned or approved, yet they are not required to receive licensing from state regulators.

“If you’re in Maine and you go to DraftKings, immediately it pops up and says authorised by the Maine Gambling Control Unit,” he said. “And if it doesn’t say that… then at least the consumer knows you haven’t authorised it… and therefore you go at your own peril.”

Just because the committee voted to approve the bill does not mean that it is now law. The bill now needs to head to both chambers of the state Congress before it goes to the Governor's desk for a signature.

Sensing the national rebuking of sweepstakes platforms, the Social Gaming Leadership Alliance rebranded its sweepstakes games to “Social Plus.” The new name was intended to separate platforms with basic consumer protections from offshore operators that endangered customers.

Despite those efforts, many states have already banned or are working on legislative bans for sweepstakes casinos.

Popular gaming company VGW suggested that sweepstakes gaming differed from traditional online casino gaming and encouraged lawmakers to regulate them instead of locking them out.