Maine has made significant strides in regulating its gambling sector, with Governor Janet Mills recently signing a series of measures aimed at curbing problematic gambling practices. One of the most noteworthy actions is the ban on sweepstakes casinos, which operate using dual-currency systems, alongside restrictions on using credit cards for online gambling. These measures are part of a broader movement to strengthen consumer protections and ensure the integrity of the state’s gambling industry.

Legislation Bans Sweepstakes Casinos

On April 6, 2026, Maine officially banned sweepstakes casinos with the signing of Legislative Document (LD) 2007. The bill specifically targets platforms that employ dual-currency systems, which simulate traditional casino-style games, such as slots, poker, and sports betting, but with a model that allows players to use both paid and promotional credits to engage in the games.

These platforms have faced increasing scrutiny due to their ambiguous legal status, often operating in a gray area. Under the new law, these sweepstakes casinos are classified as unlawful gambling activities. Operators found violating the ban can face fines ranging from $10,000 to $100,000 per instance, with the funds being allocated to Maine’s Gambling Addiction Prevention and Treatment Fund. Additionally, gambling licenses for operators found to be involved in these activities will be revoked.

Maine’s action follows similar moves in other states, with Indiana becoming the first state to enact such a ban earlier in 2026. The legislation in Maine is a clear step toward tightening regulations on unregulated gambling platforms that have proliferated across the U.S.

In a separate yet equally significant move, Governor Mills also signed a bill prohibiting the use of credit cards for online gambling. This measure, which applies to both online sports betting and iGaming activities, comes as part of a growing trend across the U.S. to restrict credit card usage in gambling markets. By eliminating credit card payments, the law aims to reduce the risk of consumers accumulating significant gambling debt.

As reported by SBC Americas, several other states, including Iowa, Illinois, and Massachusetts, have already enacted similar bans, with more states considering similar actions. In Maine, the move was endorsed by Rep. Marc Malon, who argued that the ban was necessary to protect consumers as the iGaming sector continues to expand. While major gambling operators like DraftKings and FanDuel have voluntarily moved away from accepting credit cards, the bill ensures that such practices are firmly regulated by state law, rather than relying on corporate responsibility alone.

Increasing National Momentum Against Sweepstakes Casinos

Maine’s actions add to a broader national movement aimed at regulating sweepstakes casinos, which have raised concerns due to their resemblance to traditional gambling activities. In 2025, six other states, including California and New Jersey, passed similar legislation targeting these platforms. The aim is to protect consumers from the potential harm caused by unregulated gambling products that often operate in the shadows of state-run gaming systems.

Indiana’s legislation, which also focused on dual-currency sweepstakes systems, mirrors Maine’s approach, further solidifying the trend of states taking a hard stance on these platforms. As the sweepstakes market faces increased pressure from state authorities, it is expected that other states may follow suit, continuing the push for greater regulation and consumer protection in the gambling industry.

Despite the growing momentum behind banning sweepstakes casinos, the issue remains contentious. Industry groups, such as the Social Gaming Leadership Alliance, have argued that regulated sweepstakes could generate significant revenue and provide consumers with additional options for legal entertainment. In Indiana, for example, debates continue over the potential benefits of a regulated sweepstakes market, with some advocating for a balanced approach that allows for legal operations under stricter oversight.

Moreover, the debate over the legality of sweepstakes casinos is far from settled. New Jersey, for instance, is actively considering how it should regulate such platforms, potentially shifting from a ban to a framework for regulated operations. This ongoing uncertainty highlights the complexity of regulating emerging gambling technologies, as lawmakers attempt to balance consumer protection with market innovation.