Gov. Janet Mills’ administration is seeking to ban a proliferating category of betting platforms that offer sports wagers and casino-style games while mostly flying under the radar of regulators.
The Maine Department of Public Safety unveiled a proposal Wednesday that would classify sites operating under federal sweepstakes laws as unlawful and impose fines of up to $100,000 on operators. These platforms generally use “dual-currency” systems that allow users to pay money for tokens that come with cash bonuses that can be used as real money.
It is a part of a national effort to get a grasp on the emerging style of betting that competes with state-regulated sportsbooks and online casinos. Maine’s sports betting market is dominated by tribes who have exclusive rights to the online side through partnerships with DraftKings and Caesars Sportsbook.
The bill’s unveiling coincided with sports merchandiser Fanatics launching its prediction market Wednesday in Maine and nine other states that allows people to try to cash in on sports, finance, economics and politics. Other prediction markets include Kalshi and Polymarket, the latter of which received national attention Sunday night via CBS’ “60 Minutes” program.
Those two platforms started taking bets on Maine’s 2026 elections, such as the U.S. Senate race and crowded gubernatorial primaries. They operate under a different set of federal laws and are facing scrutiny from states over their sports offerings.
The sweepstakes games are an extension of a regulated betting market that exploded nationally since a landmark U.S. Supreme Court decision in 2018 that allowed states to regulate sports betting. Maine is one of 38 states to do that so far through a law that reserved the lucrative online portion for tribes.
The Passamaquoddy have dominated it since bets opened in late 2023 through an exclusive deal with DraftKings, while the three other federally recognized tribes in Maine are aligned with Caesars Sportsbook. Sweepstakes books operating in Maine include Rebet, Novig and ProphetX. Novig said this summer that it surpassed $2 billion in volume since starting in 2024.
The tribes have not yet weighed in on the new proposal, which will be in the hands of the Legislature’s gambling committee. Rep. Laura Supica, D-Bangor, who co-chairs the panel, said Thursday she likes the idea of “looking at closing loopholes.”
“I know online gaming is the future, so how we write the regulations is important,” Supica said.
Gambling Control Unit Executive Director Milton Champion said Thursday he does not “discuss testimony or positions on a bill before the public hearing takes place.” Champion previously issued a warning to platforms operating in Maine, writing that “no online casino, iGaming or sweepstakes site” is licensed in the state.
“We strongly encourage everyone to avoid these websites; however, patrons who choose to engage with these unlicensed platforms do so at their own risk,” Champion wrote. “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.”
