Maine Gambling Control Unit Lumps Sweepstakes Casinos Into Illegal Online Play

The Maine Gambling Control Unit included online sweepstakes casinos among illegal interactive gaming activities in a warning sent out to residents and visitors to the state.

The letter, published Monday, differentiated what is considered legal in the state and what is not among online gaming activities, with advance deposit wagering, fantasy sports, and mobile sports betting among the former.

The state agency wrote that there are “numerous unregulated entities … offering illicit iGaming opportunities” and pointed out they lack regulatory oversight in Maine. It provided examples, stating, “such unlicensed platforms may include, but are not limited to, certain ‘sweepstakes’ or ‘social casino’ sites that offer real-money payouts, coin-titled substitutes, dual-currency systems, material prizes or gift cards.”

The letter continued:

“The Gambling Control Unit wants to make it very clear: no online casino, iGaming, or sweepstakes site is licensed by the Gambling Control Unit. We strongly encourage everyone to avoid these websites; however, patrons who choose to engage with these unlicensed platforms do so at their own risk.

The Gambling Control Unit cannot provide assistance or intervention in cases of disputes regarding winnings or other account issues arising from participation in illegal iGaming.”

The SPGA responds

The Social and Promotional Games Association (SPGA) usually will address legislative efforts to ban online sweepstakes casinos, and it provided a response to the Maine Gambling Control Unit’s letter.

“The Social and Promotional Games Association respectfully, but firmly, disagrees with the Maine Gambling Control Unit’s characterization of sweepstakes-based gaming platforms,” said an SPGA spokesperson via email. “Our members operate legally under longstanding promotional frameworks that have been used by major U.S. brands for decades. These platforms do not require any purchase to participate or win, and they provide a fun, transparent form of entertainment enjoyed by millions of adults.

“Unlike the offshore gambling sites referenced in the statement, SPGA members operate legally within the U.S., pay appropriate taxes, and follow a strict code of conduct to ensure consumer protection and fair play.”

The SPGA added, “It’s disheartening to see this continued conflation of lawful sweepstakes promotions with unregulated gambling, particularly in the absence of any evidence of consumer harm.”

The trade organization also hoped to begin a dialogue with the Maine Gambling Control Unit to better define how platforms operate as well as legal principles and “safeguards in place to ensure they serve the public responsibly.”