The state of Maine became the second in the United States, after Indiana, to ban the operation of online casinos based on the sweepstakes model (promotional draws) this year.
Governor Janet Mills signed the LD 2007 law on April 6, transforming the measure into Chapter 645 of the state public law.
The new legislation expressly prohibits the promotion and operation of games that use dual currency systems to simulate classic casino products, such as slots, poker, bingo, lotteries and sports betting.
With the measure, Maine regulators gain new enforcement tools to combat these platforms, reflecting a growing movement to restrict this business model across the country.
The practice is now classified as a civil infraction and can also be criminally prosecuted as illegal gambling within the state.
How the new law penalizes the dual currency model and operators
Initially, the legislation specifically focuses on the dual currency system widely adopted by social casinos.
On these sites, players buy “gold coins” intended only for recreational gambling and, at the same time, accumulate promotional coins (sweeps coins) that can be exchanged for cash prizes..
According to the new law, this format serves to circumvent restrictions, preventing the direct purchase of redeemable tokens, but encouraging transactions that guarantee the chance of real gains.
According to the statute, anyone who operates, promotes or supports these games will face civil fines ranging from $10,000 to $100,000.
Furthermore, licensed operators who violate the rule risk losing their licenses, becoming ineligible to operate in the market in the future.
All amounts collected from financial punishments will go to the state’s Gaming Addiction Prevention and Treatment Fund.
The impact of state laws and the debate on sector regulation
Maine’s move comes weeks after Indiana moved forward with its own ban (HB 1052), signed into law by Gov. Mike Braun on March 12.
While both laws target the same business model and carry penalties of up to $100,000, Maine’s text is stricter by explicitly linking violations to the crime of illegal gambling and the direct revocation of operating licenses.
Despite the institutional advancement of prohibitions, market defenders argue that banning sweepstakes casinos is not the most effective strategy from the point of view of state supervision and consumer protection.
In an interview with CasinoBeats in February, Patrick Fechtmeyer, CEO of ARB Interactive, warned that states should focus on regulating and taxing the industry.
“It’s not really about ‘we ban this industry and it’s going to disappear’. It’s about ‘where does this money move? How do you capture it?'” argued Fechtmeyer.
Soon after, the executive warned that the bans will only push the public into the parallel market (offshore).
“The main risk is that offshore operators will not stop. You will not have the ability to capture any tax revenue. Most importantly, you will not have consumer protection,” he said.
In short, with Indiana and Maine consolidating their vetoes in 2026, this debate should intensify as other states decide between a total ban or the construction of a regulatory framework.
