Maine is one step closer to banning both sweepstakes and credit card deposits.
A Maine legislative committee advanced a bill to ban online sweepstakes-style casino games while rejecting changes to fantasy sports licensing and approving new restrictions on credit card deposits for sports betting accounts during a wide ranging work session on February 18.
Maine’s legislative session ends April 15.
Sweepstakes ban advances
The committee voted 8-2 to advance LD 2007, which would prohibit online sweepstake games that mimic casino gambling. Three members were absent.
“This bill clarifies that operating or promoting an online sweepstake game constitutes unlawful gambling,” Legislative Analyst Rachel Olson said.
Violators could face fines of $10,000 to $100,000, with proceeds directed to the Gambling Addiction Prevention and Treatment Fund. Licensed operators found in violation would have their licenses revoked.
Around 60 sweepstakes casinos in state
Committee members shared with regulators on how widespread the activity already is.
Milt Champion, executive director of the Maine Gambling Control Unit, said estimates suggest “somewhere in the neighborhood of 60 operators in the state of Maine.” He confirmed none have received cease-and desist letters.
Champion described the business model bluntly, explaining that gold coins are the “hook” while the sweepstakes coins that let people win real money prizes are the main focus.
He warned the platforms allow players to “enjoy a variety of games similar to those found in traditional online casinos,” calling it “a major expansion of gambling.” Maine legalized online casinos earlier this year, so sweepstakes would serve as unregulated competition to those licensed operators as well.
Testifying remotely, VGW’s Executive Product Advisor Derek Brinkman countered that the games are “entries that have no consideration or value, a game of chance,” adding that winners receive prizes only if the outcome permits.
Fantasy bill fails as credit ban passes
The committee voted 11-0 to recommend against passing LD 2048, a bill expanding fantasy sports licensing requirements, citing questions about scope and necessity.
In the committee meeting, lawmakers noted that only five fantasy operators are currently licensed in Maine and questioned whether adding new occupational licenses, background checks and fees was warranted given the limited size of the market. Regulators also acknowledged that they did not need the changes immediately and said the issue could be revisited in a future session with more transparent definitions.
Lawmakers then voted 10-2 to advance LD 2080, prohibiting the use of credit cards for sports wagering.
