Maine has officially become the second state in 2026 to prohibit sweepstakes casinos, following the signing of LD 2007 by Governor Janet Mills.
This new legislation, titled “An Act Regarding the Prohibition of Online Sweepstakes Games,” establishes a regulatory framework that categorizes specific online sweepstakes platforms as illegal gambling activities.
The bill specifically targets the dual-currency systems and direct consideration practices commonly used by sweepstakes casinos. According to the law, an “online sweepstakes game” is defined as any platform that:
- Operates online and is accessible via mobile or computer.
- Employs a dual-currency payment system.
- Simulates casino-style gaming, including slot machines, poker, table games, lottery, bingo, or sports betting.
Furthermore, the legislation clarifies that “direct consideration” refers to any coin, token, or representation of value that can be purchased or received through promotions, which is then used to participate in online sweepstakes games.
The dual-currency model is described as one that allows participation through both purchased and promotional credits, incentivizing individuals to buy products or services to obtain coins or tokens that can be exchanged for prizes or cash equivalents.
LD 2007 also holds operators and promoters accountable, treating violations as civil offenses with fines ranging from $10,000 to $100,000. The collected fines will support the state’s Gambling Addiction Prevention and Treatment Fund. Licensed gambling operators found in breach of this law will face mandatory license revocation.
This legislation is not classified as emergency law and is anticipated to take effect approximately 90 days after the session concludes, likely around mid-July 2026.
Maine’s action follows Indiana, which was the first state in 2026 to enact a ban on sweepstakes casinos. Indiana's HB 1052 similarly defines a “sweepstakes game” and imposes penalties up to $100,000 per violation, with its ban effective from July 1.
The momentum against sweepstakes casinos has been building since 2025, when six states—California, New York, New Jersey, Connecticut, Nevada, and Montana—implemented measures against them. Additionally, Washington, Idaho, and Michigan have long been seen as off-limits for sweepstakes operators.
Other states have also made progress on similar legislation this year, indicating that more bans could be on the horizon.
In a related move, Governor Mills also signed a bill last week that restricts the use of credit cards for sports betting and future iGaming activities, aligning Maine with several other states that have enacted similar bans.