Maine’s Senate has given the green light to legislation that would shut down sweepstakes casino operators as the state gears up to launch its own regulated online gaming market. The move puts Maine in line with a growing number of US states clamping down on the unregulated sector.

Lawmakers passed LD2007 on Thursday, sending the bill to the House for consideration. The legislation takes direct aim at sweepstakes platforms, making it an offence to operate, promote, or support online sweepstakes games. Violators could face fines between $10,000 and $100,000. Licensed gaming companies caught promoting sweepstakes platforms risk losing their licenses entirely.

What Counts as a Sweepstakes Casino

The bill defines an online sweepstakes game as any internet-based contest accessible via mobile or computer that uses a dual-currency payment system and simulates casino-style gaming. That covers slots, poker, table games, lottery-style products, bingo, and sports wagering offered through the sweepstakes model.

Maine’s Gambling Control Unit has already warned residents that using sweepstakes casinos comes with risks. This legislation would give the regulator teeth to actually take enforcement action against operators rather than simply issuing advisories.

Clearing the Field for Tribal iGaming

The timing is no coincidence. Earlier this year, Governor Janet Mills signed off on legislation to launch regulated online casinos in Maine, despite her previous opposition to the idea.

The framework grants exclusive online casino licensing rights to the state’s four Wabanaki Nations tribes, each permitted to partner with a third-party operator.

Mills acknowledged her change of stance, stating that if this new form of gambling is coming to Maine, it needs proper regulation. She expressed confidence that the Gambling Control Unit will develop responsible standards while ensuring tribal communities benefit from the operations.

The tribal exclusivity arrangement didn’t sit well with everyone. Maine’s Gambling Control Board actually opposed the bill, warning that shutting commercial casinos out of the online market could harm the state’s two land-based properties. Governor Mills signed it anyway.

Operators Circling

No formal tribal-operator partnerships have been announced yet, but the usual suspects are already positioning themselves. Rush Street Interactive’s CFO Kyle Sauer has called Maine a great opportunity for the BetRivers brand. Caesars already has relationships with several Wabanaki tribes through existing sports betting partnerships, giving it a natural advantage.

Major sweepstakes operators haven’t pulled out of Maine yet. If the House follows the Senate’s lead, an exodus looks inevitable. Indiana just passed similar legislation at the end of last month, with Governor Mike Braun signing a ban that takes effect on 1 July. Sweepstakes companies are still operating there for now, but the clock is ticking.

Nationwide Pattern Emerging

Maryland is dealing with the issue from multiple angles. Four bills targeting sweepstakes casinos are working through the state legislature, while the city of Baltimore has gone straight to court, filing lawsuits against major operators including VGW, Stake, and High 5. Maryland is also mulling its own regulated iGaming market.

The pattern is clear across the US. The seven states with established legal online casino markets have largely pushed sweepstakes operators out through a combination of regulation and enforcement. Maine looks set to follow the same playbook, creating a proper regulated market while showing the unregulated competition the door.

It’s a straightforward calculation for state lawmakers. If you’re going to have online casinos operating in your jurisdiction, you want them licensed, taxed, and properly regulated. Sweepstakes platforms occupy an awkward grey area that becomes harder to justify once you’ve committed to a regulated framework.

Maine’s Senate has made its position clear. The House vote will determine whether that becomes law.

What the team thinks

Baz Hartley says:

Maine’s doing what it should have done from the start, protecting consumers by closing the sweepstakes loophole before launching proper regulation. These platforms have operated in a grey area for too long, often with bonus terms and redemption processes that would never pass muster under legitimate gaming oversight. The real winners here are players who’ll soon have access to regulated operators with proper consumer protections, transparent wagering requirements, and recourse when things go wrong.