Key Moments:
- Maine’s Joint Veterans and Legal Affairs Committee reviewed LD 2007, which would prohibit Sweeps Coin play
- DraftKings supported the proposal, citing consumer protection and regulatory alignment
- VGW and the Social Gaming Leadership Alliance opposed the bill, raising concerns about its effect on the industry
Debate Intensifies Over LD 2007 Proposal
Maine’s Joint Veterans and Legal Affairs Committee recently assessed LD 2007, legislation aimed at banning Sweeps Coin gaming in the state. The session highlighted a clear divide between advocates and critics of the proposal.
DraftKings aligned with state Gambling Control Unit officials in urging stricter controls on sweepstakes-style online gaming experiences. Meanwhile, VGW and the Social Gaming Leadership Alliance stood firmly against the measure, voicing apprehensions about its scope and potential consequences for the wider gaming marketplace.
DraftKings Cites Regulatory Integrity and Player Safety
DraftKings’ Senior Director of Legal and Government Affairs, Kevin Cochran, addressed lawmakers by positioning LD 2007 within Maine’s ongoing efforts to develop a robust online casino regulatory structure.
“With the passage of LD1164 last year and earlier this month, Maine has taken a step forward in legalizing a framework for online casino gaming that prioritizes consumer protection, responsible gaming, and regulatory oversight,” he said.
Cochran maintained that sweepstakes platforms operate outside the current regulatory system, attracting users away from licensed providers and undermining legislative intent. He conveyed that LD 2007 would help consolidate gaming under well-regulated conditions, supporting DraftKings’ belief that this would retain users in a safer, more transparent environment.
Cochran referenced Maine’s online sports wagering rollout as an example of a system that maintains both oversight and consumer safety.
Significant Penalties Proposed for Violations
Milton Champion, Director of the state’s Gambling Control Unit, informed committee members that LD 2007 would bring Maine in line with jurisdictions such as New York, New Jersey, Connecticut, Nevada, Montana, and California, and suggested that additional states are expected to take similar actions.
“The bill impacts online games or contests that use a dual currency system of payment, and that simulates casino style gaming, including but not limited to slot machines, poker and other table games, lottery games, bingo, and even sports wagering,” he explained.
A key focus of the legislation is its definition and targeting of dual currency platforms. Under LD 2007, operating or promoting such sweepstakes games could result in penalties starting at $10,000 and going up to $100,000. Funds collected from these fines would go to the Gambling Addiction Prevention and Treatment Fund.
Champion pointed out that licensed operators would face especially strict consequences, stating, “If a person is found to operate or promote an online sweepstakes game, and that person holds a license with a gambling control unit or the gambling control board within the Department of Public Safety to operate a casino, fantasy, sports, or even charitable gaming activities, the licensing entity must be revoked.” He further clarified that offenders would lose eligibility for future licensure.
| Violation | Penalties | Added Consequences for Licensed Entities |
|---|---|---|
| Operating or promoting dual currency sweepstakes | $10,000 – $100,000 fine directed to Gambling Addiction Prevention and Treatment Fund | License revocation and ineligibility for future licenses |
Industry Leaders Argue Against the Measure
The Social Gaming Leadership Alliance voiced strong opposition, warning that LD 2007 would “ban and actually criminalize our entire industry, including law abiding businesses that have been operating in Maine since 2012.”
Sean Ostrow, Managing Director of SGLA, explained that sweepstakes-style games function similarly to free-to-play social games, augmented with opportunities to win prizes through recognized promotional channels. Ostrow noted that these are already permitted under Maine law and highlighted safeguards such as mandatory 21+ participation along with robust age and identity verification protocols.
Ostrow cautioned that the bill’s passage could force legitimate operators to exit the state, leaving only illegal actors behind.
VGW’s Lloyd Melnick echoed many of these worries, focusing particularly on the potential suppression of gaming advancements. “By banning these Social Plus games, Maine would be setting a precedent that any future interactive innovation interested in entering the state could be blocked,” he told lawmakers, referencing daily fantasy and historical horse racing as examples of what might be excluded.
He observed that VGW’s offerings have reached millions nationwide since 2012, including many players in Maine, with the majority never having spent any money. Melnick pointed out that while most prizes are small, the company has “made multiple millionaires over the 12 years we’ve been in existence.”
- Author
Daniel Williams
