Maine has passed a law banning online sweepstakes casinos. On April 6, 2026, Gov. Janet Mills signed LD 2007, a bill that makes it unlawful to operate or promote certain online sweepstakes games in the state.
The new law targets platforms that use a dual-currency setup and mimic casino-style gambling, including slots, poker, bingo, lottery-style games, and sports-wager-like products. For operators, the law creates steep fines and licensing risks. For players, it means Maine is joining the growing list of states taking direct action against sweepstakes-style gaming.
The move is notable because Maine is taking a split approach to online gambling. Earlier this year, the state allowed tribal online gambling through a separate law, while now banning the sweepstakes model. That gives Maine one of the clearest positions in the country: regulated online gambling may have a place, but sweepstakes casinos do not.
Industry groups such as the Social Gaming Leadership Alliance have criticized that approach and argued that regulation would be better than prohibition. Still, the governor’s signature means the debate has now shifted from whether the bill will pass to how operators respond.
What Maine’s New Law Bans
At the center of LD 2007 is Maine’s definition of an online sweepstakes game. The law covers online games, contests, or promotions that use a dual-currency payment system and simulate gambling-style activity. In practice, that means sites that let players use one type of coin for play and another type that can be redeemed for cash, prizes, or prize equivalents are now directly in the state’s crosshairs.
The law is broad in what it covers. Maine says the ban applies to games that simulate casino-style gaming, including slot machines, poker, other table games, lottery games, bingo, and sports wagering.
Supporters of the bill argued that these platforms function too much like real gambling, even when operators describe them as free-play entertainment or promotional contests. By signing LD 2007, Maine has now written that view into law.
The Penalties Could Hit Operators Hard
The new law does more than simply ban the games. It also creates serious penalties for businesses that keep offering them. A person or company that operates or promotes an online sweepstakes game in Maine can face a fine of at least $10,000 and up to $100,000 per violation. Those fines will go to the state’s Gambling Addiction Prevention and Treatment Fund, linking enforcement to problem-gambling programs.
There is also a licensing consequence. If a person found in violation already holds a gambling license from Maine’s Gambling Control Unit or Gambling Control Board, the relevant agency must revoke that license.
On top of that, a violator can become ineligible for certain gambling licenses in the future. That makes the law important not just for sweepstakes operators, but also for companies already involved in Maine’s legal gambling market.
Why This Matters Beyond Maine
Maine’s decision fits into a wider national trend. In late 2025 and early 2026, more states started moving against sweepstakes casinos through bills, cease-and-desist letters, and lawsuits. What makes Maine stand out is that it has now finished the process and enacted a direct ban. That gives other states a fresh example of how to define the sweepstakes model in law and how to attach meaningful penalties to it.
The timing also matters because Maine is not rejecting all forms of online gambling. Earlier in 2026, LD 1164 became law and authorized Maine’s tribal governments to operate online gambling.
That contrast may shape how other lawmakers think about the issue: if a state is willing to regulate some online gambling, it may become less willing to tolerate sweepstakes platforms operating outside that system.
For players, nothing changes in the sense that Maine had already been signaling a hard line. But now the state has a clearer legal foundation. That could lead operators to block Maine users more quickly, change redemption rules, or leave the state entirely.
For the broader industry, Maine’s new law is another sign that the legal room for sweepstakes casinos may be shrinking in 2026.
