Maine Bans Sweepstakes Casinos; Second State in 2026

Governor Janet Mills signed LD 2007, a law that outlaws sweepstakes-style gaming parlors across Maine. The statute bars businesses that use prize-based electronic games marketed as promotional sweepstakes but that regulators and critics say operate like slot machines.

The legislation targets storefront venues that grew rapidly in recent years, particularly in smaller towns and commercial strips. Supporters of LD 2007 argued these operations exploited statutory loopholes to offer gambling without the licensing, oversight or consumer protections that apply to licensed casinos and tribal gaming.

LD 2007 gives state regulators the authority to enforce the ban, investigate suspected violations and pursue civil penalties against operators found to be running prohibited sweepstakes gaming. State agencies will develop implementation and enforcement plans under the law.

Operators maintain they comply with existing law, describing their services as internet access and promotional sweepstakes tied to purchases rather than traditional gambling. Industry representatives have warned that enforced closures could lead to revenue losses and job cuts at affected venues. Lawmakers who opposed the bill raised concerns about consequences for small-business owners who invested in sweepstakes operations under prior legal interpretations.

Legal experts and policy analysts expect challenges in court. Past regulatory efforts in multiple states have prompted litigation over whether sweepstakes-style activities meet state definitions of gambling and whether prohibitions confront federal law or constitutional protections. Operators or trade groups are likely to pursue similar legal action in Maine.

With LD 2007 now enacted, Maine becomes the second U.S. state this year to prohibit sweepstakes-style casinos. The law adds to a pattern of state-level responses that range from tighter rules to outright bans. Observers will watch how regulators apply the law and whether other states adopt comparable measures or choose regulatory clarifications instead.