Maine Committee Advances Sweepstakes Ban as Regulator Cites Growing National Crackdown

Maine lawmakers advanced legislation to explicitly prohibit sweepstakes casinos, even as debate continues over whether such models should be banned or regulated. On Feb. 18, the Joint Committee on Veterans and Legal Affairs voted 8-2-3 absentees to advance LD 2007, “An Act Regarding the Prohibition of Online Sweepstakes Games.” The committee previously discussed the bill in January, but did not vote on it.

The legislation creates a new chapter in Maine’s gaming statutes, dedicated to online sweepstakes games. It defines “sweepstakes game” as any internet-based game or promotion that uses a dual-currency system and offers casino-style outcomes.

The bill clarifies that operating or promoting a sweepstakes game constitutes unlawful gambling. It imposes civil penalties ranging from $10,000 to $100,000 per violation.

National Crackdown

Opening the work session, committee analyst Rachel Olsen framed the issue as part of a broader national trend.

She noted that six states have enacted legislation in 2025 to ban sweepstakes casinos, with all but Nevada explicitly banning the model. Olsen added that several other states have relied on enforcement rather than statutory bans:

“Attorneys general and gaming regulatory agencies in several states took… enforcement actions in 2025 to restrict the operation of online sweepstakes games… Louisiana, West Virginia, Tennessee, Delaware, Maryland, and Kentucky, as well as additional crackdowns in Arizona, Mississippi, and Minnesota.”

Regulator: Unlicensed, Unregulated, and Risky

Gambling Control Unit Director Milton Champion told lawmakers that he estimates that roughly 60 sweepstakes casinos operate in Maine, citing industry publications.

He confirmed Maine has not issued cease-and-desist letters, instead opting for a consumer-facing warning. Last June, the regulator sent out a letter warning consumers that sweepstakes platforms are not authorized in the state.

He emphasized that licensed operators in Maine clearly display state authorization, creating a consumer distinction between regulated and unregulated products.

“If you’re in Maine and you go to DraftKings, immediately it pops up and says authorized by the Maine Gambling Control Unit. And if it doesn’t say that, then at least the consumer knows you haven’t authorized it or we haven’t authorized it, and you’re not regulating it, and therefore you go at your own peril.”

Champion also pointed to broader national momentum against sweepstakes platforms, noting active legislation in multiple states.

“We now have active legislation in Ohio, Michigan, Virginia, Pennsylvania, Georgia, Louisiana, Mississippi, North Carolina, Iowa, Maryland, and Florida.”

When asked whether those efforts were regulatory frameworks rather than bans, he responded: “They’re all to ban them. Yes.”

VGW: “The Core Game, Not Gambling”

Derek Brinkman, Executive Product Advisor for VGW — operator of Chumba Casino and LuckyLand Slots — argued that the company’s model is distinct from traditional gambling.

He told lawmakers prize redemptions are not tied to the core gameplay itself:

“In the core game, there’s no prize redemptions. The only prize redemptions come from the marketing promotion that uses the sweepstakes.”

Brinkman suggested Maine could regulate and tax the model rather than prohibit it outright:

“We could add an additional tax on this specific type of game to open up additional revenue streams into states that wanted to regulate this.”

Some Lawmakers Question Ban

Not all members were fully convinced that prohibition is the right approach — a view that has surfaced in states such as Indiana and Maryland.

Rep. David Boyer said his position shifted after hearing VGW’s testimony:

“I was inclined to support the bill when I was under the… understanding that it had to do with people paying for tokens and then pulling out tokens for money. It doesn’t sound like that’s the case. I don’t really have an issue with the sweepstakes part of their business as well.”

Part of a Growing National Crackdown

As Olsen and Champion testified, LD 2007 is one of a growing number of bills across the U.S. that target sweepstakes casinos.

In the 2026 legislative session, roughly a dozen states have introduced legislation that either explicitly prohibits dual-currency platforms or strengthens illegal gambling statutes to give regulators greater enforcement authority.

In Indiana, the Senate recently passed an amended bill after the House passed it. However, after the amendment, the House rejected the Senate version, and the bill now heads to a conference committee. In Virginia and Mississippi, ban provisions have cleared the House. In Florida, a broad illegal gambling measure awaits a House floor vote.

Elsewhere, bills in states such as Maryland, Tennessee, Oklahoma, Iowa, and Louisiana are in the initial committee stage.