Maine has taken a step against online sweepstakes-style gaming, approving a new law that critics say could limit options for players without tackling illegal gambling.

Gov. Janet Mills signed LD 2007 this week after it cleared the state legislature, putting Maine among the most aggressive states moving against sweepstakes-based casino platforms. The law targets sites that use promotional sweepstakes systems to offer casino-style games, a model that has expanded quickly as a workaround to traditional online gambling rules.

Soon after the signing, the Social Gaming Leadership Alliance criticized the decision and warned about its broader effects on players.

“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,” said Sean Ostrow, managing director of the group, in a release provided to ReadWrite.

“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,” he said, adding, “Even as many other states are looking to regulate and tax this growth industry, Maine’s gaming policy continues to pick winners and losers while stifling innovation.”

Lawmakers who backed the bill framed it as a necessary fix to what they see as a loophole. Sweepstakes casinos often let users play for free or buy virtual currency, sometimes redeemable for prizes, blurring the line between gaming and gambling.

Supporters argued that these platforms operate in a gray area and avoid the stricter rules imposed on licensed gambling operators.

Why lawmakers say the Maine sweepstakes model needed to be closed

State officials pointed to concerns about oversight and consumer safety as a driving force behind the legislation. They argued that some platforms may lack meaningful protections, including age veri...