- Oxford Casino and Churchill Downs sued to block Maine’s iGaming law, calling tribal exclusive rights a race-based monopoly.
- The law allows four tribes to partner with online casino platforms and pay 16% revenue to fund state programs.
- Tribal leaders called the lawsuit hypocritical, noting casinos held their own monopoly for over 25 years.
OXFORD, Maine – A significant legal dispute has emerged in Maine’s gambling sector mere weeks following the state’s decision to authorize online casino gaming. On January 23, Oxford Casino alongside its parent corporation Churchill Downs initiated federal litigation aimed at halting recent legislation that provides sole iGaming privileges to the Wabanaki Nations, contending the setup establishes what they characterize as a race-based monopoly.
LD 1164, which Governor Janet Mills permitted to become law earlier this month without signing it, is the subject of the lawsuit. The four federally recognized tribes in Maine—the Maliseet, Mi’kmaq, Penobscot, and Passamaquoddy – would collaborate with businesses to provide legal online casinos throughout the state under the proposed law. According to Wall Street analysts, the tribal iGaming business may bring in as much as $200 million annually.
How The New Framework Operates
The new legislation is similar to Maine’s sports betting system, which was created in 2022 and granted exclusive operation rights to tribes. The state will get 16% of gaming revenue from each tribe’s partnership with one online casino platform, which will be used to support programs for problem gambling, opioid treatment, veterans’ homes, and other services. The Passamaquoddy joined forces with DraftKings for legal sports betting, while three other tribes joined Caesars Sportsbook, which generated $66 million in revenue last year.
Read more: Tribes Get Exclusive Rights For Online Casinos in Maine
Oxford Casino claims that by discriminating against people based on their race, the law violates the Equal Protection Clause. According to research cited by the casino, an increase in internet gambling might result in the loss of 378 jobs and $60 million in state economic value. Churchill Downs stated they would prefer no online casino industry in Maine, but if it exists, they believe they deserve the opportunity to participate.
Tribes Push Back Against Legal Challenge
Tribal authorities have vigorously refuted the lawsuit’s allegations. The Passamaquoddy Tribe’s Chief William Nicholas described the court action as an assault on sound government-to-government economic development, pointing out that for more than 25 years, out-of-state casino interests have benefited from their own monopoly while tribes were completely excluded.
The action, according to Representative Aaron Dana, is extremely disingenuous because Oxford Casino and Hollywood Casino have had the sole authority to run physical casinos for years.
The lawsuit has the potential to prevent Maine from entering the online gaming business. Legal ambiguity may make tribal relationships with gambling platforms more difficult, even though LD 1164 officially permits Maine sportsbooks and casino operations to begin in April. The National Association Against iGaming has also threatened a ballot referendum to let voters overturn the law entirely.
