DraftKings joins in on legal sweeps debate in Maine, here's why
Sports betting operator DraftKings has publicly announced its support for a potential law that would change the legal status casino-style sweeps operators in Maine, pitting it directly against operators seeking to maintain a social and sweepstakes presence in the US state.
Maine is the latest US state to consider legislative action against sweepstakes operators, with some lawmakers claiming that the activity featured on such platforms is too similar to real-money gambling. Those state’s lawmakers have proposed a bill that seeks to restrict sweeps operators by classifying them as illegal gambling operations under state law.
This latest discussion around sweeps comes just after Maine became the latest state to legalize online casinos, but lawmakers, regulators, and even the operators themselves are divided on how, or if, that regulation should extend to sweeps.
DraftKings backs Maine sweeps ban, social and sweeps operators push back
DraftKings is a prolific daily fantasy and sports betting operator that has a notable presence across much of the United States. The operator’s backing a ban on sweeps is no surprise, as such a ban could potentially eliminate competition for the company, as it’s expected to be one of the few operators running casino games in Maine’s newly-regulated online casino environment.
DraftKings cited that Maine recently legalized online casinos, which offer players a regulated gambling environment. The operator claims sweepstakes casinos are diverting players away from regulated operators by operating outside the regulations of the online casinos they compete against for players’ attentions.
More specifically, these players might be diverted away from a future online casino run by DraftKings in partnership with a local tribal organization.
Image credit: Slot Hopper
Some industry groups, including the Social Gaming Leadership Alliance and VGW, have criticized the bill and warned that the state of Maine risks alienating an entire industry. They argue that sweeps are free-to-play with some chance of winning real prizes, and that this is perfectly legal under existing state law. Furthermore, the group suggests that a ban would force out legal operators while illegal platforms will continue on in their place, exposing players to less safe and reliable options.
They also caution that setting such a precedent may deter potential future investors who might otherwise want to contribute resources to gaming in the state.
Maine sweeps bill, LD2007, explained
Legislative Document 2007 (LD2007) is a bill proposed by Maine lawmakers that would directly address sweeps that emulate casino activities. The bill doesn’t necessarily aim to take action against any and all social gaming operators, just those that have a dual-currency sweepstakes system.
Backing lawmakers and DraftKings argue that the dual-currency system and the probability of redeemable prizes means that such sweeps operators are indistinguishable from traditional gambling platforms. Maine isn’t the first state to so address sweeps, as multiple other US states, including New York, have taken action with this same reasoning.
Google has also reclassified sweepstakes as gambling, making it harder for operators to advertise their platforms through traditional means as the regulated online betting and gambling environment continues to evolve.
LD2007 would make it a crime to operate, promote, or otherwise support casino-style sweepstakes platforms. Operators and promoters found in violation could be fined between $10,000 and $100,000 per violation. Maine’s Gambling Addiction Prevention and Treatment Fund would handle the fines.
The bill also proposes revocation of existing licenses for violators, or a ban from acquiring future gambling licenses in the state of Maine, making the stakes even higher for noncompliance. But despite the backing of DraftKings and some voices in Maine’s state government, the passage of the bill in the face of dissenting voices is far from a sure thing, particularly given that any gap left over by legal sweeps operators being removed would almost certainly be filled by unregulated alternatives.
Feature image credit: Canva
Khizar Mundia has been playing video games for as long as he can recall. Things have come a long way since the many days he spent playing the original NES, though. He now covers a variety of competitive games and esports, as well as the world of streaming, ranging from Twitch to Kick. If it’s of interest to gamers, it’s of interest to Khizar.
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