The Maine Gambling Control Unit (MGCU) issued a warning and reminder earlier this week about illegal online casino websites and sweepstakes casinos operating in the state.
Online Casinos, Sweepstakes Casinos Are Not Regulated In Maine
Online sports betting, fantasy sports games, and advance deposit wagering are legal in Maine, but online casino-style games such as slots, blackjack, and roulette for real money are prohibited in the Pine Tree State.
The MGCU issued this public statement to residents:
“Despite the legality of online advance deposit wagering, fantasy contests and sports wagering, online casino games like slots, blackjack, and roulette for real money remain strictly prohibited in the State,” the statement read.
“Numerous unregulated entities continue to target Maine residents, offering illicit iGaming opportunities. These operations, based out of state and often out of the country, include sites that may appear legitimate but lack any regulatory oversight in Maine.
“Examples of 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 Gambling Control Unit wants to make it very clear: no online casino, iGaming, or sweepstakes site is licensed by the Gambling Control Unit.”
Sweepstakes Casinos, Social Casinos Operate Under Dual-Currency System
By real-money payouts, the MGCU is referring to the cash prize redemptions that sweepstakes casino players can receive if they earn enough Sweeps Coins and decide to redeem those for cash.
Sweeps Coins (SC) stem from the dual-currency system that regulators and lawmakers across the country believe should constitute as real-money gambling. These types of coins have no real-world value.
Sweeps players can also collect Gold Coins (GC), which are purely for in-game use and have no redeemable value. Unlike Gold Coins, Sweeps Coins cannot be bought but can be redeemed for cash or “material prizes or gift cards.”
SPGA Disagrees With MGCU’s Statement
In a statement released to the media on Tuesday, the Social and Promotional Games Association (SPGA) strongly opposed the MGCU’s label — saying it “respectfully, but firmly, disagrees” with the regulator’s warning.
“Our members operate legally under longstanding promotional frameworks that have been used by major U.S. brands for decades,” an SPGA spokesperson said in the statement.
“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.
“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. We welcome the opportunity to engage with Maine officials in a constructive dialogue to clarify how these platforms operate, the legal principles they follow, and the safeguards in place to ensure they serve the public responsibly.”
Note that the MGCU’s warning is not a subpoena or cease-and-desist letter, so sweepstakes operators are not required to leave Maine. The regulator is only informing citizens that it has no authority over unregulated sites and that residents play games on these sites “at their own risk.”