Getting down to business
The bill, also known as Legislative Document No. 2007 (SP 825), couldn’t be discussed until the government reconvened for the Second Regular Session of the 132nd Maine Legislature on Jan. 7.
The bicameral group of officials that met on Wednesday did not take a vote to approve the proposal, and will consider making amendments before action is taken. However, the state and its leadership have shown a willingness to move toward outlawing sweepstakes casinos.
Champion, in particular, called dual-currency-based casinos “unlawful gambling” if they operate without procuring a gaming license.
Representatives of DraftKings Sportsbook testified in support of the bill on Wednesday. The company is one of two online sportsbooks that are authorized to operate within the state.
“Maine has taken a step forward in legalizing a framework for online casino gaming that prioritizes consumer protection, responsible gaming, and regulatory oversight,” said Kevin Cochran, senior legal and government affairs director at DraftKings. “Unregulated sweepstake-style casino platforms operate outside of that framework, drawing players away from licensed operators and undermining the intent of the law.”
Maine could ban sweepstakes casinos
While there haven’t been any official advancements in anti-sweepstakes policy, Maine has been active in regulating its gaming market.
Last week, the Pine Tree State became just the eighth in America to legalize online casinos, opening the door to a slew of new tax revenue.
Many states have discussed banning sweepstakes casinos, even if they have not passed legislation. Additionally, the following states completely outlawed sweeps-style casinos:
- California
- Connecticut
- Montana
- Nevada
- New Jersey
- New York
Sweepstakes casinos operate on a dual-currency model that utilizes gold coins and sweeps coins. They have escaped state-level regulation and licensing since they allow but don’t require customers to purchase coins to play their casino-style games. Customers can also win prizes that include coins, gift cards, and various prizes.
Feeling the regulatory pressure, many prominent sweepstakes operators banded together to rebrand to "social plus” and aiming to work with regulators to distinguish themselves from illegal offshore competitors.