Maine became the second state in 2026 to ban sweepstakes casinos after Gov. Janet Mills signed LD 2007.
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Maine Gov. Janet Mills signed LD 2007 into law, becoming the second state in 2026 to ban sweepstakes casinos. The measure, titled “An Act Regarding the Prohibition of Online Sweepstakes Games,” establishes a new regulatory framework that classifies certain online sweepstakes platforms as unlawful gambling activity.
The legislation explicitly defines dual-currency systems and direct consideration, directly targeting the model used by sweepstakes casinos. Under the law, an “online sweepstakes game” is any platform that:
The bill defines “direct consideration” as:
A coin, token, or other representation of value that may be purchased by a person or received through a bonus or promotion and that is used for playing or participating in an online sweepstakes game.”
It also defines the dual-currency model as one that allows participation through both paid and promotional credits, while:
Encourag[ing] a person to purchase services, products, coins, tokens or other representations of value… in order for that person to obtain the coins, tokens, or other representatives of value that are exchangeable for prizes, awards, cash or cash equivalents.”
LD 2007 targets operators, promoters, and any parties supporting sweepstakes casinos. Violations are treated as civil offenses, with penalties ranging from $10,000 to $100,000 per violation. Fines are directed to the state’s Gambling Addiction Prevention and Treatment Fund.
Any licensed gambling operator found in violation will face mandatory license revocation.
The bill is not designated as emergency legislation and is expected to take effect approximately 90 days after the session adjourns, placing implementation in mid-July 2026.
With Mills’ signature, Maine became the second state in 2026, after Indiana, to enact a formal ban on sweepstakes casinos.
Indiana’s approach was similar to Maine’s. HB 1052 defines a “sweepstakes game” as one that is available online, simulates lottery or casino-style games, and uses a dual- or multi-currency payment system. Penalties are up to $100,000 per violation.
Indiana’s ban takes effect on July 1.
The two states’ bans build on momentum from 2025, when six states — California, New York, New Jersey, Connecticut, Nevada, and Montana — implemented measures targeting sweepstakes casinos.
In addition, Washington, Idaho, and Michigan have long been considered off-limits to sweepstakes operators.
Several other states have also advanced legislation in at least one chamber this year, suggesting more could follow.
The sweepstakes ban follows a separate measure signed by Gov. Mills last week restricting the use of credit cards for sports betting and the future iGaming market.
With the signature, Maine joins a growing number of states with regulatory or legal bans on credit cards. They include Iowa, Illinois, Massachusetts, New Hampshire, Oregon, Rhode Island, Tennessee, and Vermont.
The Virginia Legislature also passed a bill this year, which awaits the governor’s signature. In states such as New York, New Jersey, and Maryland, lawmakers are discussing a ban.
Several major operators, including DraftKings, FanDuel, and BetMGM, have also moved away from credit card usage as part of responsible gambling measures.
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