Maine Becomes Second State in 2026 to Ban Sweepstakes Casinos — Governor Signs LD 2007 Into Law

Maine Governor Janet Mills signed LD 2007 into law on April 6, 2026, officially banning online sweepstakes casinos in the Pine Tree State. The move makes Maine the second state in 2026 to outlaw these platforms, following Indiana’s earlier crackdown, and signals a growing national backlash against dual-currency gambling sites that have operated in a legal gray area for years.

What Does the New Law Prohibit?

LD 2007 prohibits the operation and promotion of online sweepstakes games that use a dual-currency system — a model that many social casinos have relied on to argue they are not gambling platforms. Under this model, websites allow players to purchase “gold coins” for social play while simultaneously earning “sweeps coins” that can be redeemed for real cash prizes.

Maine now classifies these dual-currency sweepstakes casinos as unlawful gambling under state law. The ban covers sweepstakes-style products that simulate casino games including slots, poker, bingo, lottery games, and sports wagering. The law’s scope is deliberately broad, targeting any platform that uses the dual-currency mechanism to offer gambling experiences to Maine residents.

Penalties Are Severe

Operators who violate the new law face significant financial penalties. Fines range from $10,000 to $100,000 per violation, with the revenue directed toward addiction treatment and gambling harm prevention programs. Additionally, the law revokes any existing gambling licenses tied to prohibited sweepstakes activity and specifically targets unregulated operators.

Maine’s legislature gave the bill final passage on April 2, and the governor signed it just four days later — an unusually rapid timeline that reflects the urgency lawmakers placed on addressing what they viewed as an unregulated expansion of online gambling in the state.

The 90-Day Countdown

Under Maine law, signed bills take effect after 90 days. This means sweepstakes casino operators serving Maine players will need to remove their Sweeps Coin gameplay options from their platforms by approximately early July 2026. Platforms that fail to comply face the full range of penalties outlined in the legislation.

The 90-day window gives operators time to wind down their offerings in the state, though many may choose to geoblock Maine users well before the deadline to avoid any risk of enforcement action.

A Growing National Trend

Maine’s ban is part of a much larger wave of state-level crackdowns on sweepstakes casinos across the United States. Indiana was the first state to act in 2026, and several other states are moving in the same direction. Illinois regulators have launched one of the largest sweepstakes crackdowns yet, ordering 65 operators to block residents or face potential civil and criminal penalties.

Mississippi, Iowa, and Oklahoma have also recently cracked down hard on sweepstakes casinos, while states like Michigan and Pennsylvania are reviewing their internet gaming regulations more broadly.

The sweepstakes casino industry has grown rapidly in recent years, filling a gap in states that have not legalized traditional online casino gaming (iGaming). Critics argue these platforms exploit the dual-currency loophole to offer what is effectively online gambling without the licensing, taxation, and consumer protections required of regulated operators. Currently, only six states — New Jersey, Pennsylvania, Michigan, Delaware, West Virginia, and Connecticut — have fully legalized regulated online casino gambling.

What’s Next

Interestingly, Maine is simultaneously moving toward legalizing regulated online casinos, with the state set to become the eighth state to legalize real-money iGaming. Under the planned framework, four iCasinos would launch with each of the state’s four federally recognized tribes given exclusive rights to partner with one third-party operator.

This dual approach — banning unregulated sweepstakes casinos while welcoming licensed iGaming — suggests a regulatory model other states may follow. The message is clear: state lawmakers want online gambling that is regulated, taxed, and comes with robust player protections, not the unregulated free-for-all that sweepstakes casinos have represented.