Maine Lawmakers Propose Ban on Dual-Currency Sweepstakes Casinos
Maine Introduces Legislation Against Dual-Currency Sweepstakes Casinos
Lawmakers in Maine are considering new legislation aimed at banning sweepstakes casinos that operate with a dual-currency system. This approach would categorize their core business model as illegal gambling under state law. The bill, known as Legislative Document 2007 (LD 2007), targets platforms that offer casino-like games using two types of virtual currency: one earned for free and another that can be exchanged for real-world prizes after gameplay.
Concerns Over Player Safety and Gambling Legitimacy
The central issue surrounds whether these platforms are genuine promotional sweepstakes or simply online casinos disguised under another name. LD 2007 defines sweepstakes games as online products that replicate traditional casino experiences, allowing users to redeem winnings through a secondary virtual currency system.
Major players in the regulated betting industry, including DraftKings, have voiced support for this bill during recent committee hearings. They argue that sweepstakes operators bypass regulations required of licensed gambling businesses. Particularly worrying is the absence of age verification and responsible gaming measures, which poses potential harm to consumers.
If enacted, the law would introduce a new section within Maine’s gaming regulations specifically targeting sweepstakes-style games. Violations could result in civil fines ranging from $10,000 to $100,000 per offense. Given that Maine hosts approximately 60 sweepstakes casinos, such a ban would have significant effects on the market.
Industry Pushback and Calls for Balanced Regulation
Regulators in Maine have expressed growing concern over the increasing presence of sweepstakes platforms. Instead of immediate shutdown orders, prior actions included consumer warnings emphasizing that legitimate operators must display state licensing information, which sweepstakes sites typically do not.
However, industry leaders challenge this perspective. VGW, the company behind Chumba Casino and Global Poker, criticized the legislation, highlighting that most users do not spend money and that the platforms offer a safe social environment. Similarly, the Social Gaming Leadership Alliance maintains that its members adhere to consumer protection standards and contribute to local economies.
Maine’s proposed bill calls for a total ban on these games, contrasting with the sweepstakes industry’s preference for a regulatory framework. Other states are also taking measures against sweepstakes casinos: Illinois issued cease-and-desist orders to 65 companies, labeling these operations as illegal gambling. Several other states, including Utah, Virginia, Iowa, Tennessee, Maryland, Florida, Indiana, and Mississippi, have enacted restrictions on similar offerings.
