New Maine Bill Aims to Shut Down Sweepstakes Casinos

Maine is one of the latest US states to join the campaign to question the dual-currency model, and possibly ban sweepstakes casinos. Last December 3rd, Senator Craig Hickman (D) filed the LD 2007, titled An Act Regarding the Prohibition of Online Sweepstakes Games, and was immediately forwarded to the Committee on Veterans and Legal Affairs. 

Like similar state bills, LD 2007 defines and aims to restrict the use of the popular sweeps currencies, like Gold Coins (GCs) and Sweeps Coins (SCs), with the Maine Gaming Control Unit as the primary authority to clarify and impose the new rules.

Sen. Hickman and Opponents Clashed Over Proposed Sweeps Bill

Maine does not currently authorize or license any online or sweepstakes casino sites. The Maine Gambling Control Unit (MGCU) has repeatedly warned its residents that online sweepstakes casinos and other unregulated platforms “are considered illegal interactive gaming” and that they can access these sites at their own risk.

Now, the state is making a move to define and limit sweepstakes casino operations. Senator Hickman and supporters say that the bill is needed to:

• Close “a legal loophole” that allowed many sites to operate using a dual-currency model, without being regulated under gambling laws.
• Protect players by clarifying that sweepstakes games fall under unlawful gambling, especially when using tradeable coins linked to real-world prizes.
• Align the state laws with the recent actions of other states, which redefine, restrict, or completely ban these sites

Critics openly hit the bill, with the Social Gaming Leadership Alliance (SGLA), arguing that these games are legit free-to-play social games, and must be regulated and not banned. The group also warned that an outright ban could potentially impact economic activity or hurt innovation.

A Look at the Possible Penalties

Aside from clarifying its definition of sweepstakes games, LD 2007 also proposed penalties, such as:

• Fines. Site operators or promoters face penalties of $10,000 to $100,000 per violation. The fines shall be used for the state’s Gambling Addiction Prevention and Treatment Fund.
• License revocation. Licensing will be revoked, and operators may be barred from future licensing under the state’s regulatory system.

Maine’s anti-sweeps bill targets both operators and affiliates, affecting marketing platforms, influencers, and partners involved in the industry. 

Major sweepstakes casino operators have not yet commented on the new bill.

REFERENCES:

• Maine LD 2007