Maine Regulator Warns Residents About Sweeps Casinos With New Law In Place

Written By:   Author Thumbnail Matthew Bain
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Matthew Bain Contributing Journalist
Matthew Bain has covered the legal gambling landscape in the US since 2022, both as a content director at Catena Media and now as a freelancer for Comped and Sweepsy. Before that, he spent six years as a sports reporter ...
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Maine’s gaming regulator warns residents against illegal Sweeps Coin play as the state’s new law targeting sweepstakes casinos takes effect.

Now that Sweeps Coin gameplay is officially illegal in Maine, the head of the state gaming regulator has issued a warning to residents about sweepstakes casinos.

Milton Champion, the Executive Director of the Maine Gambling Control Unit, issued a press release on July 29 to bring awareness to the public that Sweeps Coin gameplay is now illegal and to caution residents against playing games on sweeps casino sites.

“Patrons who choose to engage with unlicensed platforms do so at their own risk,” Champion said in the release. “Unlicensed operations, which are generally based out of state and often out of the country, include sites that may appear legitimate but lack any regulatory oversight in Maine. Examples of such unlicensed platforms may include “social casino” sites that offer real-money payouts, coin-titled substitutes, dual-currency systems, material prizes or gift cards.

“The Gambling Control Unit CAN NOT provide assistance or intervention in cases of disputes regarding winnings or other account issues arising from participation in illegal gambling services.”

Some background on Maine’s new law

The release says that Legislative Document 2007, which Gov. Janet Mills signed in April, became officially codified law on July 29.

Support for LD2007 was far from unanimous. The Joint Veterans and Legal Affairs Committee held three public hearings before ultimately sending a divided report to the Senate in March. The House vote also reflected that split, with lawmakers approving the bill 87-55.

However, the legislature still ultimately passed the bill and Mills signed it. One of the bill’s strongest sources of support came from real-money iGaming operators, which have a clear interest in eliminating competition from sweepstakes operators.

Maine is set to launch a real-money iGaming market in early 2027.

“Maine has taken a step forward in legalizing a framework for online casino gaming that prioritizes consumer protection, responsible gaming and regulatory oversight,” Kevin Cochran, Senior Director of Legal and Government Affairs at DraftKings, testified during one of LD2007’s hearings in January. “Unregulated sweepstakes-style casino platforms operate outside of that framework, drawing players away from licensed operators and undermining the intent of the law.”

A different level of attention to detail

What made LD2007 particularly notable was that it divided the concept of consideration — essentially, something of value used to participate in gaming — into two separate categories.

The first is “direct consideration.” Under the bill, that encompasses a coin, token or other unit of value that consumers can purchase, or get through a promotion, and then use to participate in an online sweepstakes game.

The second category is “indirect consideration.” This refers to something of value that a player receives without directly purchasing it, but it can ultimately be exchanged for money, prizes, or an opportunity to win them.

That language put Sweeps Coins in its crosshairs.

LD2007 also banned sweeps operators from selling a digital currency if that currency itself can be converted into cash or a cash equivalent. And it banned situations where consumers purchase something that has no cash value — such as a bundle of Gold Coins — while getting a separate currency that does carry redemption value — such as Sweeps Coins.

Because of all this attention to detail, perhaps no bill has more effectively attacked the sweepstakes casino model than LD2007.

Violations carry a minimum fine of $10,000 and a maximum of $100,000. Revenue generated through those penalties will be directed to Maine’s Gambling Addiction Prevention and Treatment Fund.

SGLA: New law won’t ‘protect Mainers from exploitative illegal online gambling’

The Social Gaming Leadership Alliance, the main advocacy group supporting the sweeps gaming industry, expressed its disapproval of Maine’s law after Mills signed LD2007.

“We are disappointed that Maine LD 2007 will become law,” Sean Ostrow, then the Managing Director and currently the Executive Director, said via a press release. “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.

“Even as many other states are looking to regulate and tax this growth industry, Maine’s gaming policy continues to pick winners and losers while stifling innovation.”

Looking back at 2026 scorecard

Indiana, Maine, Tennessee, Louisiana and Oklahoma banned Sweeps Coin gameplay in 2026, while Iowa gave regulators expanded enforcement powers. The laws in Indiana, Maine, Tennessee, Louisiana, and Iowa have taken effect, while Oklahoma’s will go into effect on Nov. 1.

The industry also secured important victories, as bans failed in Maryland, Massachusetts, Minnesota, Virginia and Mississippi.

Overall, 2026 ended roughly evenly divided between anti-sweeps and pro-sweeps outcomes, with five states banning the model and five blocking proposed bans, plus Iowa’s regulatory enforcement measure. A bill in Washington, DC that would have banned sweeps casinos and legalized real-money online casinos also failed to gain any traction this year.

About The Author
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Matthew Bain
Matthew Bain has covered the legal gambling landscape in the US since 2022, both as a content director at Catena Media and now as a freelancer for Comped and Sweepsy. Before that, he spent six years as a sports reporter and editor for the USA TODAY Network, primarily at the Des Moines Register. Through his various roles, Matthew has racked up experience in the casino, sports betting, and lottery markets.