Maine Gambling Control Unit reminds residents about sweepstakes casino ban

The Maine Gambling Control Unit has issued a notice to residents and visitors in the state regarding its recently enacted ban on sweepstakes casino gaming. The advisory points out that the statute has now taken effect and that playing on sweepstakes casino websites constitutes illegal gambling in Maine.

Many sweepstakes casino operators have already limited their operations or stopped doing business in Maine ahead of the law’s effective date. With the statute now effective, Maine law enforcement can begin to determine to what extent they will act upon possible infractions.

MGCU tells players to steer clear of sweepstakes casinos

A press release from the Maine Gambling Control Unit (MGCU) states that the notice is “regarding illegal online sweepstakes operators who may be offering illegal gambling” in Maine and “patrons who choose to engage with unlicensed platforms do so at their own risk.” The statement adds that “LD 2007...became effective and is now codified at Title 8, Chapter 38 in the Maine Revised Statutes.”

That statute defines the operation of sweepstakes casino games as illegal gambling and contains provisions that could assess fines as large as $100,000 for violations. Many sweepstakes casino operators have opted to steer clear of that liability already.

Sweepstakes casino operators moving to avoid potential prosecution

Many companies operating sweepstakes casinos have participated in a steady procession of websites completely ceasing their operations in Maine. Examples include B-Two Operations sites (HelloMillions, McLuck, SpinBlitz) and Luck Party.

Some sites have opted to simply reduce their operations in Maine rather than exiting the state altogether. Instead of offering dual-currency digital coin packages to play their games, they have curtailed those packages to a single-currency format that does not provide for real-money prizes.

Whether that modification will be sufficient to avoid legal problems in Maine will depend on interpretation of the law and prosecutors’ willingness to test their reading of the statute. The motivation to do so may swell as real-money online casinos go live in the state.

Maine iGaming regulation makes landscape more legally tenuous for sweepstakes casinos

The MGCU is in the process of drafting regulations and issuing licenses for real-money online casino play. Maine law provides opportunities for tribal gaming authorities to offer such gambling throughout the state.

That gives law enforcement in Maine another potential avenue to bring civil actions against or prosecute sweepstakes casino operators, as they would lack the appropriate licensure. If law enforcement in the state were to take enforcement actions, the case would come down to whether the games on the website in question fit the statutory definition of an online sweepstakes game.

There are preliminary measures that law enforcement and the MGCU can take, like sending cease-and-desist letters to the operators of websites that potentially violate the statute. Such means represent a much lower investment of resources but can be effective in convincing holdouts to comply with the law.

With the statute now in place, the MGCU has firmer grounds to issue such cease-and-desist demands. This press release could be a signal that such letters will be forthcoming in the near future for website operators rolling the dice on continuing to sell digital coin packages in Maine.

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