Maine ban on dual-currency sweepstakes triggers exits

Maine has enacted a ban on online sweepstakes games that use dual-currency payment systems. Gov. Janet Mills signed LD 2007 in late April; the law, which defines covered games as internet-based platforms that use a dual-currency model and offer casino-style outcomes involving direct or indirect consideration, takes effect in mid-July.

The law and parallel legislation in other states have led several sweepstakes operators to change where they offer services. Since late March, operators have updated terms and altered eligible jurisdictions. Multiple platforms have exited Illinois and California while expanding or resuming access in states where enforcement has been less active or legal outcomes are unsettled.

Operators withdrawing from Illinois include Dara Casino, Lucky Slots, Peak Play, Smiles Casino and Zunado. In California, Casino Click and Rebet have left the market; Gold Coin play is no longer available in that state. Mega Frenzy announced a shutdown effective April 30, and Americana Casino appears to have ceased operations.

At the same time, some companies have reentered or expanded in other states. Gold Treasure returned to Kentucky and Massachusetts. Lucky Slots resumed services in Tennessee, Rhode Island and Wyoming. Lucky Stake reentered Alabama, Delaware, Hawaii and Utah after previous exits from Mississippi and Tennessee. Sixty 6 returned to Virginia. Sweeps USA expanded into Arizona, Maryland, Massachusetts, North Carolina, Pennsylvania, Rhode Island, Tennessee, Vermont and West Virginia. Zoot and Zunado increased availability in states including Arizona and Mississippi. Sweet Sweeps and The Money Factory also reentered selected states.

Lawmakers in several states have moved to restrict dual-currency sweepstakes or to expand enforcement powers. Tennessee’s SB 2136, which would ban online sweepstakes using dual-currency systems, has passed both chambers and awaits enrollment before being sent to the governor. Iowa’s SF 2289 passed the legislature unanimously and adds language on illegal sweepstakes while strengthening enforcement tools; it now awaits final procedural steps. In Louisiana, HB 53, which makes unlawful gambling tied to sweepstakes-style platforms a predicate offense for racketeering, passed the legislature and awaits the governor; HB 883, which would broaden the state’s “gambling by computer” statute to cover dual-currency platforms, has passed the House and advanced in the Senate. Oklahoma’s SB 1589, which defines “online casino games” to include dual-currency systems, passed the Senate and is progressing in the House. Minnesota’s SF 4474, which would ban such sweepstakes games and restrict revenue from illegal gambling, awaits a Senate floor vote.

Other jurisdictions have taken or already had restrictive positions. Maine’s ban will take effect in mid-July. Indiana will enforce a ban beginning July 1. Several states, including California, Connecticut, Montana, New Jersey and New York, have laws that prohibit dual-currency sweepstakes platforms. Nevada has expanded statutes to allow regulators to pursue criminal charges against unlicensed operators. Idaho, Washington and Michigan have long been treated as off-limits because of strict gambling statutes and prior enforcement actions.

Legislative calendars vary by state. Oklahoma’s session runs until May 29, Minnesota’s until May 18, and Louisiana’s until June 1. Illinois legislation targeting sweepstakes stalled during the session, and two Maryland bills did not clear the Senate before adjournment. Operators continue to update eligible jurisdictions as lawmakers and regulators act.