Maine legislators have passed a bill that prohibits online sweepstakes casinos and websites that mimic casino gambling through promotional methods. LD 2007 passed on Thursday and now awaits Gov. Janet Mills' signature.
Key Takeaways
- Maine has passed Senate Bill 2007 to classify online sweepstakes casinos as unlawful gambling.
- The law introduces civil fines up to $100,000 and enables criminal prosecution for operators.
- The measure passed the House on March 26 with a vote of 87-55.
The bill, introduced by Sen. Craig Hickman, clearly defines online sweepstakes casino gambling. The measure targets websites that offer casino games, such as slots, poker, and sports betting, using two forms of currency. One is virtual coins players buy, and the other is promotion credits they can redeem for prizes.
Lawmakers said the bill removes ambiguity that operators have used to argue compliance with gambling laws. The legislation creates a specialized statutory scheme, which makes the operation and promotion of such sites illegal.
Penalties for violation are severe. Civil fines can range from $10,000 to $100,000 per violation, with fines being used to fund Maine's Gambling Addiction Prevention and Treatment Fund. The bill also amends criminal laws to allow companies and individuals involved in sweepstakes to be prosecuted.
The law includes strict consequences for licensed gambling entities. Any operator found supporting sweepstakes platforms faces mandatory license revocation and potential exclusion from future approvals.
The bill, introduced to the Senate Veterans and Legal Affairs Committee in December, passed the Senate on March 12 before moving to the House, where it passed 87-55 on Thursday.
Maine joins a growing list of states that have sought to regulate the industry, with similar bills pending in the legislatures of Tennessee, Oklahoma, and Maryland. Earlier this month, Indiana Gov. Mike Braun signed HB 1052 into law, which would ban sweepstake-style casino platforms.
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Maine's iGaming market falls under tribal control
The crackdown comes as Maine continues to develop a regulated online gaming framework led by tribal operators. The Wabanaki Nations now hold exclusive rights to internet gaming under recent legislation supported by Gov. Mills that was signed in January.
She allowed the bill to become law despite earlier concerns, following consultations with tribal leaders. Chiefs from the Mi'kmaq Nation, the Houlton Band of Maliseet Indians, the Penobscot Nation, and the Passamaquoddy Tribes highlighted the economic benefits of regulated iGaming.
Penobscot Nation Chief Kirk Francis described the legislation as a step toward economic self-governance. Mi'kmaq Chief Sheila McCormack said it would deliver sustainable revenue for essential services. Houlton Band Chief Clarissa Sabattis pointed to stronger consumer protections compared to unregulated markets.
The framework builds on earlier reforms, including the 2022 expansion allowing tribal control of sports betting. It also reflects the long-standing legal intricacies of the Maine Indian Claims Settlement Act, which assigns tribal authority a diminished role compared to federal standards.
Gov. Mills has continued the incremental approach to tribal sovereignty, supporting targeted reforms while opposing broader legislative changes. The issue remains salient in advance of Maine's upcoming gubernatorial election, in which several candidates have pledged support for tribal authority.
