The sweepstakes casino model is dead in Maine, after the state’s governor, Janet Mills, enacted a bill that also killed the use of credit cards for the purposes of gambling.
Sweepstakes have long been criticized all over the country as a way to dodge gambling regulation, and while prediction markets faced the same pushback, the social casino sector has seemed to bear the brunt of legislative action.
Gov. Mills has signed Legislative Document 2007 into law, becoming the second state after Indiana this year, to have banned the activity. In the same stride, the governor also signed Legislative Document 2080, which prohibits the use of credit cards for sports gambling.
The Social Gaming Leadership Alliance has already issued a statement commenting on the first issue:
"We are disappointed that Maine LD 2007 will become law. Unfortunately, this bill will do nothing to generate revenue for the state nor protect Mainers from exploitative illegal online gambling. Instead, LD 2007 will ban free and low-cost social games that have been operating responsibly for over a decade, leaving the thousands of Maine adults who enjoy them without a safe, trusted outlet for this mainstream entertainment."
The trade group cautioned that by enacting this measure, the state will lose out on innovation and further suffer financially, while urging lawmakers to start thinking about ways to better regulate, not outright ban, thriving sectors.
The newly passed LD 2007 will effectively suspend the operations of an estimated 60 sweepstakes operators in Maine, turfing them out once and for all. However, Maine may not be the last place to consider a more decisive action against the sector.
Minnesota is also looking into potentially restricting sweepstakes casinos, threatening an outright ban.
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