The state of Maine has officially closed the door on the unregulated sweepstakes casino industry. Following an 87-55 vote in the legislature, LD 2007 has been passed and is currently awaiting the signature of Governor Janet Mills.
The bill aims to eliminate legal loopholes that previously allowed “social casinos” to offer real-money-style gambling without local licenses or consumer protections.
Steep Fines and Criminal Penalties
The new law, LD 2007, specifically targets platforms offering slots, poker, and sports betting under a dual-currency system of “virtual coins” and “promotional credits.” Violators now face civil fines ranging from $10,000 to $100,000, and anyone found in violation of the ban will become permanently ineligible for a state gaming employee license.
This crackdown follows Maine’s recent legalization of tribal-run online casino gaming, with Governor Mills being convinced of the economic importance of protecting the Wabanaki Nations’ regulated market.
Kikr Becomes the Latest Exit in Shifting Market
As regulatory pressure mounts across the US, smaller sweepstakes operators are struggling to survive.
Kikr has officially shuttered its doors today, citing “shifting market conditions.” In a final email to players, the company stated:
“We’ve made the difficult decision to close down Kickr due to shifting market conditions and our parent company’s strategic decision to focus on new verticals and brands.”
Kikr joins a growing list of failed “sweeps” brands, including LuckyStars and Betty Sweeps. Analysts suggest that as more states like Indiana, Montana, and New York enact similar bans, the once-unstoppable sweepstakes model is facing a terminal decline in the face of regulated competition.
