Maine Gov. Janet Mills (D) signed a bill banning sweepstakes casinos. The move came after the state legalized online casinos at the start of the year.
Lawmakers introduced Legislative Document 2007 in December. The bill “clarifies that operating or promoting an online sweepstakes game constitutes ‘unlawful gambling’ within the meaning of the Maine Criminal Code.”
The law outlines fines of between $10,000 and $100,000 for anyone who operates or promotes online sweepstakes casino platforms. Maine gambling regulators could also revoke the gaming license of any operator engaging in sweeps casino gaming.
Ban Brings Disappointment To Industry
Sweepstakes operators have now been banned in several states over the last year.
Operators argue their platforms are more akin to traditional mobile gaming. Users do not have to purchase anything to play.
The industry has favored regulation rather than outright bans. Operators claim states are missing out on revenue from the industry by prohibiting this form of mobile gaming. The Social Gaming Leadership Alliance (SGLA) industry trade group was disappointed with the new law in Maine.
“We are disappointed that Maine LD 2007 will become law,” managing director Sean Ostrow said.
“Unfortunately, this bill will do nothing to generate revenue for the state nor protect Mainers from exploitative illegal online gambling. Instead, LD 2007 will ban free and low-cost social games that have been operating responsibly for over a decade, leaving the thousands of Maine adults who enjoy them without a safe, trusted outlet for this mainstream entertainment.”
Critics of the industry have argued that sweepstakes platforms simply circumvent state gaming laws and function almost the same as online gaming operators.
DraftKings Pushed For Ban
Perhaps signaling a move to enter the online casino market in Maine, DraftKings supported the move to ban sweepstakes operators in the Pine Tree State.
DraftKings’ Senior Legal and Government Affairs Director Kevin Cochran testified during hearings on the issue and argued that unlicensed sweepstakes gaming would undermine the state’s new online gaming landscape. He expressed concern that legal platforms would have to compete for players with sweeps sites.
Earlier this year, Mills legalized online gaming and poker through inaction. She neither signed nor vetoed the legislation. Under the new law, Maine’s four federally-recognized tribes are allowed to partner with iGaming operators.
However, the plan has been met with legal action. Churchill Downs, which owns the Oxford Casino in Maine, has sued the state for allowing iGaming only through the state’s tribes.
The state has two commercial casinos. Churchill argues that giving the Wabanaki Nations an exclusive right to run the industry amounts to a “race-based monopoly.”
Along with the sweeps ban, Mills also signed Legislative Document 2080, which bans the use of credit cards to fund an online sports betting account.
