Maine legislators are advancing a proposal that would outlaw a category of internet-based casino-style games often marketed as online sweepstakes platforms. Supporters of the measure say it would close a gap in state gambling law, while critics argue it would wipe out a popular form of digital entertainment used by thousands of residents.
The measure, LD 2007 (SP 825), carries the title “An Act Regarding the Prohibition of Online Sweepstakes Games.” Sen. Craig Hickman introduced the bill in the Maine Senate, and it has been sent to the Legislature’s Veterans and Legal Affairs Committee for review.
Under the proposal, the state would explicitly classify certain online sweepstakes-style gaming products as illegal gambling. The legislation is designed to make clear that operating or promoting those platforms violates Maine law.
Maine lawmakers target sweepstakes-style gaming sites
The bill creates a new section in state statute focused specifically on “online sweepstakes games.” In the text, those games are described as internet-based platforms that rely on a dual-currency system and mimic traditional casino experiences such as slot machines, poker, bingo, lottery-style draws, or sports wagering.
Many of these platforms allow users to purchase one form of virtual currency while earning another that can sometimes be redeemed for prizes. Critics of the model say the setup closely resembles real-money gambling.
The bill states: “A person that operates or promotes an online sweepstakes game or supports the operation or promotion of an online sweepstakes game commits a civil violation.”
If enacted, the proposal would allow regulators to impose civil penalties ranging from $10,000 to $100,000 for violations. Any money collected through those fines would be directed into Maine’s Gambling Addiction Prevention and Treatment Fund.
The measure also outlines additional consequences. Licensed gambling operators found to be involved with sweepstakes-style games could lose their state licenses, and individuals who violate the law could be barred from obtaining certain gaming-related licenses in the future.
Industry group pushes back
The legislation has previously drawn criticism from the Social Gaming Leadership Alliance (SGLA), a trade organization representing companies that run sweepstakes-based social gaming platforms.
In written testimony to state lawmakers, the group argued that the proposal would effectively eliminate what it calls the “Social Plus” gaming sector. According to the alliance, those platforms function as free-to-play online games that rely on promotional sweepstakes mechanics rather than traditional wagering.
“These are a lawful category of free-to-play and freemium online social games,” the group said, warning that banning them could push legitimate companies out of the state while doing little to stop offshore operators.
The organization estimates that roughly 50,000 adults in Maine currently play these kinds of games online.
Rather than banning the platforms outright, the alliance has urged lawmakers to consider building a regulatory system that would license operators and impose consumer protections. The group says a regulated market could produce more than $3 million annually for the state while introducing safeguards such as age verification, geolocation controls, and responsible gaming tools.
Across the United States, policymakers, such as in Indiana, have increasingly begun examining sweepstakes-style casino platforms as the industry grows.
Supporters of tighter rules say the games mirror real-money gambling but operate outside established licensing systems. Companies behind the platforms argue they function as promotional sweepstakes and should be treated differently from traditional gambling products.
As of Thursday (March 12), LD 2007 has cleared the Maine Senate and has been sent forward for concurrence, placing it roughly in the middle of the legislative process.
If the measure ultimately passes both chambers and receives the governor’s signature, operating or promoting online sweepstakes games in Maine would become a violation of state gambling law.
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