Maine Lawmakers Propose Ban on Dual-Currency Sweepstakes Casinos
Legislation Targets Dual-Currency Sweepstakes Casinos in Maine
Lawmakers in Maine are advancing a bill aimed at prohibiting sweepstakes casinos that use a dual-currency system. This system involves two types of virtual currencies: one awarded to players for free and another that can be exchanged for real-world prizes after gameplay. The proposed legislation, known as Legislative Document 2007 (LD 2007), seeks to classify these sweepstakes platforms as illegal gambling under state law due to their operational model.
Concerns Over Player Safety and Gambling Legitimacy
The core issue revolves around whether these platforms operate as legitimate promotional sweepstakes or are essentially online casinos disguised under another name. According to LD 2007, an online sweepstakes game simulates traditional casino gameplay while granting users the ability to redeem winnings through a secondary currency, blurring the lines with gambling activities.
Major established gambling companies, including DraftKings, have expressed support for this legislation. During a recent committee hearing, representatives highlighted how sweepstakes casinos may bypass regulations applicable to licensed gambling operators. They also cited worries over insufficient age verification and lack of responsible gaming measures that could jeopardize consumer safety.
If enacted, the law would introduce a new category within Maine’s gaming statutes specifically addressing sweepstakes-style ventures. Violations could lead to civil fines ranging from $10,000 to $100,000 for each offense. With approximately 60 sweepstakes casinos operating in the state, the ban could significantly impact the industry.
Sweepstakes Operators Advocate for Regulation Over Prohibition
Regulatory bodies in Maine have grown increasingly vigilant about the rising presence of sweepstakes platforms. Instead of immediately enforcing shutdowns, they have generally issued consumer warnings. The Maine Gambling Control Unit emphasizes the importance of proper state licensing — a requirement that most sweepstakes casinos currently do not meet.
From the industry’s perspective, companies like VGW, the operator behind Chumba Casino and Global Poker, criticize the proposed bill. They stress that the majority of players do not spend money and enjoy the games as a safe social activity. The Social Gaming Leadership Alliance also asserts that its members adhere to consumer protection standards and contribute positively to the state economy.
Maine’s approach calls for a total ban rather than a regulated framework, which sweepstakes representatives favor. This stance is mirrored by other states such as Illinois, where authorities recently served cease-and-desist orders to 65 companies, classifying sweepstakes as illegal gambling. States including Utah, Virginia, Iowa, Tennessee, Maryland, Florida, Indiana, and Mississippi have also taken steps to limit or regulate sweepstakes platforms.
