Maine has become the latest state to hone in on unregulated gambling through sweepstakes platforms. A new proposal submitted by the Maine Department of Public Safety aims to crack down on operators offering “dual currency” types of wagering.
Key Takeaways
- Maine proposes fines and a full ban on sweepstakes platforms in new legislation.
- The attempt comes as Maine wants to crack down on unlicensed betting.
- Only Maine’s federally recognized tribes can offer forms of gambling.
The proposal targets companies that use a dual-currency system, which allows players to purchase virtual tokens with bonus entries redeemable for real cash value, and would classify operators using this system under the sweepstakes model. Operators found in violation would be fined up to $100,000.
The move aligns Maine with a growing national effort to rein in these sites, which, critics say, compete directly with state-regulated sportsbooks. Maine’s sports betting market launched in late 2023 and is dominated by the state’s federally recognized tribes through partnerships with DraftKings and Caesars Sportsbook. Legislation to expand the market to encompass iGaming was also introduced but failed to advance.
Sweepstakes platforms like Rebet, Novig, and ProphetX have also been active in Maine despite not holding any state licenses. Regulators, however, have warned players they are on their own if disputes arise.
Milton Champion, director of the Maine Gambling Control Unit, declined to comment on the bill but previously urged residents to avoid these types of platforms.
“We strongly encourage everyone to avoid these websites; however, patrons who choose to engage with these unlicensed platforms do so at their own risk. The Gambling Control Unit cannot provide assistance or intervention in cases of disputes regarding winnings or other account issues arising from participation in illegal iGaming,” Champion said in June.
The bill will now head to the Legislature’s gambling committee. The co-chair of that committee, Laura Supica, has said she supports closing loopholes but also stressed the need for thoughtful regulation as online gaming continues to grow.
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New York’s sweeps ban awaits Hochul’s signature
New York is also making inroads in the sweepstakes sector. A bill banning online sweeps casinos arrived on Gov. Kathy Hochul’s desk this week, opening a 30-day window for her to sign or veto it. If she does neither, it automatically becomes law on New Year’s Eve.
The bill, championed by Sen. Joseph Addabbo, passed the state legislature overwhelmingly in June. It defines sweepstakes as any online game that uses a dual-currency system and simulates casino-style play, including slots, poker, bingo, lottery games, and sports wagering.
It also bars payment processors, geolocation firms, media affiliates, and gaming suppliers from supporting sweepstakes activity in New York. If enacted, New York would join California, New Jersey, Nevada, Connecticut, and Montana in banning online sweeps.
However, industry leaders argue lawmakers misunderstand the model. The Social Gaming Leadership Alliance stated the bill could harm the state's economy, citing a study that estimates sweepstakes casinos generated $762 million in New York sales in 2024, with a corresponding economic impact of $230 million.
