Gov. Janet Mills’ administration is seeking to ban a sweepstakes offered on betting platforms that offer sports wagers and casino-style games while mostly flying under the radar of regulators.

The Maine Department of Public Safety unveiled a proposal that would classify sites operating under federal sweepstakes laws as unlawful and impose fines of up to $100,000 on operators.

These platforms generally use “dual-currency” systems that allow users to pay money for tokens that come with cash bonuses that can be used as real money.

The sweepstakes games are an extension of a regulated betting market that exploded nationally since a landmark U.S. Supreme Court decision in 2018 that allowed states to regulate sports betting. Maine is one of 38 states to do that so far through a law that reserved the lucrative online portion for tribes. 

The tribes have not yet weighed in on the new proposal, which will be in the hands of the Legislature’s gambling committee. Rep. Laura Supica, D-Bangor, who co-chairs the panel, said Thursday she likes the idea of “looking at closing loopholes.”

“I know online gaming is the future, so how we write the regulations is important,” Supica said.