Hearings on Two Bills Potentially Targeting Sweepstakes Casinos Advance in Florida and Open in Maine

Lawmakers in Florida and Maine held pivotal hearings this week on legislation that could reshape the legality of sweepstakes-style online casinos, as regulators and industry witnesses clashed over whether the platforms should be treated as lawful entertainment or illegal gambling.

Hearings on Two Bills Potentially Targeting Sweepstakes Casinos Advance in Florida and Open in Maine
Photo by Niek Doup on Unsplash

Florida lawmakers advanced a bill that rewrites the state’s criminal gambling code to cover online casino-style gaming. Meanwhile, Maine legislators heard testimony from both DraftKings and VGW, the sweepstakes giant behind Chumba Casino and LuckyLand Slots, on whether Maine should prohibit sweepstakes gambling outright.

Florida: HB 189 Advances With Direct Internet Casino Ban

Florida’s House Criminal Justice Subcommittee on Jan. 14 approved a committee substitute for CS/CS/HB 189 by a 13–4 vote, advancing the bill for further consideration in the House.

The amended bill creates a specific definition of “Internet gambling”:

“any game in which money or other thing of value is awarded based on chance… available on the Internet… and simulates casino-style gaming, including, but not limited to, slot machines, video poker, and table games.”

It then makes operating or promoting those platforms a felony:

“A person who operates, conducts, or promotes illegal gambling, Internet gambling, or Internet sports wagering… commits a felony of the third degree.”

Sweepstakes casinos use dual-currency systems and offer slot-style and table-game simulations online, which places them squarely within the statutory framework Florida is now criminalizing.

The bill also introduces new crimes for gambling advertisements, exposing affiliates, influencers, and marketing networks that promote illegal online casinos to prosecution. The advertising provision is particularly significant for the sweepstakes sector, which relies heavily on influencer and celebrity marketing.

In recent months, litigation involving sweepstakes casinos has increasingly named endorsers, with the most prominent example being Drake, who promotes the crypto casino Stake and the sweepstakes platform Stake.us.

Although the committee debate primarily focused on arcades and illegal machines, which have been a big problem in Florida, the newly adopted statutory language is broad enough to cover online casino-style sweepstakes games. That would provide Florida regulators and prosecutors with a powerful new enforcement tool.

Maine: Regulators Push Ban, DraftKings Supports It, VGW Pushes Back

In Maine, the Joint Veterans and Legal Affairs Committee held hearings on LD 2007 on Jan. 13. Unlike Florida, Maine did not vote this week, leaving the bill for further discussions.

Maine Regulators Seek Sweepstakes Ban

Milton Champion, executive director of Maine’s Gambling Control Unit, told lawmakers that LD 2007 would:

“Clarify [y] that operating or promoting an online sweepstakes game constitutes unlawful gambling within the meaning of the Maine criminal code.”

He explained that the bill targets explicitly platforms that:

“use a dual currency system of payment and… simulate casino-style gaming, including but not limited to slot machines, poker, and other table games, lottery games, bingo, and even sports wagering.”

Under LD 2007, operators could face fines of $10,000 to $100,000 per violation, license revocation, and permanent ineligibility to hold any gaming license in Maine.

DraftKings Backs the Sweepstakes Crackdown

DraftKings formally testified in support of LD 2007, arguing that sweepstakes casinos undermine Maine’s regulated gaming framework.

Kevin Cochran, DraftKings’ senior director of legal and government affairs, told lawmakers:

“Unregulated sweepstake-style casino platforms operate outside of that framework, drawing players away from licensed operators and undermining the intent of the law. This legislation would help close that gap and ensure online casino gaming… is conducted in a safe and regulated environment.”

He added that the bill would:

“help retain players in that regulated market that does offer… consumer protections… fair play standards… and responsible gaming resources.”

DraftKings tied the issue directly to Maine’s upcoming iGaming framework under LD 1164, arguing that sweepstakes casinos threaten the state’s legal online casino rollout.

VGW Warns Maine not to ban Sweepstakes Games

VGW, the largest sweepstakes-casino operator in the U.S., appeared to oppose the bill.

Lloyd Melnick, VGW’s chief growth and strategy officer, told lawmakers that sweepstakes games are free-to-play entertainment, not gambling:

“Casino-themed games are nothing new… For those who don’t want the stress of risking real money on a gambling website… our games merely share mechanics with casino games without a player ever having to spend a dime.”

Melnick warned that banning social-plus and sweepstakes platforms would:

“set a precedent that any future interactive innovation… could be blocked” and could even threaten products like daily fantasy sports and historical horse racing.

Florida and Maine Join Indiana in Opening 2026 Sweepstakes Casino Battles

Florida and Maine are not alone in grappling with sweepstakes-style online casino models this legislative session. Earlier in January, Indiana lawmakers formally opened debate on House Bill 1052, a proposal that would explicitly ban sweepstakes casinos and dual-currency gambling platforms.

HB 1052’s hearing before the Indiana House Public Policy Committee on Jan. 6 marked the first discussion of sweepstakes casinos in the Hoosier State during the 2026 session. Lawmakers debated whether to ban or regulate platforms that operate using a dual-currency model.

The state’s gaming regulator testified in favor of a ban. Still, representatives indicated that, under the current law, these platforms are not clearly unlawful.

Like in Maine, the Indiana committee did not vote on HB 1052.

Topics
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Chavdar Vasilev
Global Wire Editor

Chavdar Vasilev is the Global Wire Editor at Gambling Insider, overseeing first-day coverage of breaking developments across the global gambling industry. His work focuses on regulation, enforcement actions, earnings, market activity, and emerging sectors, including prediction markets and sweepstakes casinos.

Previously, Vasilev reported for publications including CasinoBeats and Bonus.com, covering industry-shaping stories across the U.S. and beyond, from legislative debates and market expansion to financial performance and operator strategy.

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