Maine has enacted legislation prohibiting online sweepstakes games, establishing civil penalties and linking violations to the state's unlawful gambling provisions.
The measure, SP 825, LD 2007, was signed into law by Maine Governor Janet Mills after clearing both chambers of the Maine Legislature. It creates a new section in state law that bans any person from operating, promoting or supporting the operation or promotion of an online sweepstakes game.
Under the law, an online sweepstakes game is defined as a game, contest or promotion available on the internet and accessible through devices such as mobile phones or computers that uses a dual-currency system of payment and simulates casino-style gaming.
The statute lists slot machines, poker, table games, lottery games, bingo and sports wagering among the formats covered.
The law defines direct consideration as coins, tokens or other representations of value that may be purchased or received through a bonus or promotion and then used to participate in gameplay.
Indirect consideration is defined as coins, tokens or similar items that are provided free through a promotion or with the purchase of a related product, service or activity and that may be exchanged for prizes, cash or cash equivalents, or for the chance to win them.
Violations carry fines ranging from $10,000 to $100,000. The law states that all fines collected must be distributed to Maine's Gambling Addiction Prevention and Treatment Fund.
It also sets out licensing consequences. If a licensee is convicted of unlawful gambling or is otherwise found to have violated the new prohibition through the relevant administrative process, the Maine Gambling Control Unit or Maine Gambling Control Board must revoke that license. Any person found in violation is also barred from receiving certain gambling licenses covered by the statute.
The bill summary states that the measure was intended to clarify that operating or promoting an online sweepstakes game constitutes unlawful gambling under the Maine Criminal Code, while creating additional civil penalties tied to that conduct.
GGI previously reported on Maine's move to prohibit sweepstakes when the bill was introduced, noting that the proposal targeted dual-currency models and set out penalties of up to $100,000 for breaches.
The law also allows the Gambling Control Unit to adopt further rules on what constitutes a dual-currency system of payment
