Maine Warns Residents to Steer Clear of Illegal Sweepstakes Gaming Sites

A Clear Warning from Augusta

Maine Gambling Control Unit (GCU), led by Executive Director Milton Champion, issued a stark advisory about illegal online gaming platforms flooding the state.

“No online casino, iGaming, or sweepstakes site is licensed by the Gambling Control Unit,” Champion stated, emphasizing that residents using these sites do so at their own peril. The GCU cannot assist with disputes over winnings or account issues, leaving players vulnerable.

Maine permits some online gambling, like sports betting, fantasy contests, and advance deposit wagering for horse racing, all tightly regulated by the GCU; however, online casino games are strictly off-limits.

The GCU singled out “sweepstakes” or “social casino” sites, which often use dual-currency systems, virtual coins, or gift card prizes to mimic gambling. “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,” the GCU noted.

Sweepstakes Under Scrutiny

Sweepstakes sites, like Chumba Casino and Luckyland Slots, market themselves as legal alternatives to online casinos, letting players use free or purchased virtual coins for games with cash prize potential.

The GCU flagged their real-money payouts and dual-currency setups as illegal in Maine. Many operate offshore or in states with looser rules, evading Maine’s oversight.

Champion warned that these sites “may appear legitimate” but offer no recourse if funds vanish or games rig outcomes.

SPGA Pushback

The Social and Promotional Games Association (SPGA), representing sweepstakes operators, fired back, calling the GCU’s warning a misstep. “We respectfully, but firmly, disagree with the Maine Gambling Control Unit’s characterization of sweepstakes-based gaming platforms,” the SPGA stated, arguing its members operate legally under decades-old promotional frameworks used by major U.S. brands.

The group stressed that no purchase is required to play or win, offering “a fun, transparent form of entertainment” for millions. The SPGA, distancing itself from offshore gambling sites, said members pay U.S. taxes and follow a strict code of conduct for consumer protection.

“It’s disheartening to see this continued conflation of lawful sweepstakes promotions with unregulated gambling,” the statement read, urging open talks with Maine officials.

Industry Insights and Risks

A couple of months ago, analyst Aaron Lee from Macquarie Equity Research argued that sweepstakes casinos don’t significantly cut into regulated iGaming revenue, acting instead as a substitute for players without legal casino access. “There is little evidence that sweepstakes cannibalize iGaming revenues,” Lee said, suggesting they could even highlight untapped tax potential, much like daily fantasy sports paved the way for sports betting.

However, Eilers & Krejcik Gaming found Michigan’s sweepstakes in March 2025 didn’t boost regulated gambling, as most sweepstakes users stick to free play, with minimal high spenders.

Regulated operators, wary of legal risks, avoid sweepstakes, per Lee, as violations could jeopardize their licenses.