A bipartisan proposal to legalize online casino gaming in Maine was reconsidered by state legislators this week. The central issue at hand is a provision granting exclusive licensing rights to the Wabanaki Nations.
House Bill 1164 Would Give Maine’s Four Wabanaki Tribes Exclusive Rights To Operate Internet Gaming
House Bill 1164, reintroduced to the Veterans and Legal Affairs Committee by Rep. Ambureen Rana (D-Bangor), would authorize iGaming and cede operational authority solely to the state’s four federally recognized tribes.
The legislation would help prevent unregulated betting activity via offshore sites while expanding economic opportunities for tribal and non-tribal communities, redirecting funds back into the state.
Revenues generated through mobile gaming services would be subject to a 16 percent tax. The measure would follow the 2022 legalization of online sports betting, which allowed the state’s four federally recognized tribes to operate online sportsbooks through partnerships with Caesars Entertainment and Draft Kings.
Nonetheless, not all parties support the exclusivity language. The bill reads: “Only a federally recognized Indian nation, tribe or band in this State is eligible to obtain a license and operate Internet gaming.”
Steve Silver, chair of the Maine Gambling Control Board, expressed opposition to the bill. Silver testified tribal exclusivity could lead to job losses at privately operated casinos in the state.
“Oxford and Hollywood Casinos employ nearly 1,000 Mainers,” Silver wrote. “Legalizing iGaming without permitting Oxford and Hollywood to participate will lead to job cuts — I am willing to bet on it.”
Tribal Leaders, Caesars Entertainment, And DraftKings Support Legislation
HB 1164 supporters, which include Tribal leaders, Caesars Entertainment, and DraftKings, argue that the bill would fix a number of disparities. Although many tribes across the U.S. rely on gaming for economic development, Maine’s tribes have historically been excluded from potential economic growth.
In addition, Maine tribes do not have the same sovereignty over reservation lands as tribes in other states due to the Maine Land Claims Settlement Act. Tribes in the Pine Tree State also do not operate brick-and-mortar casinos.
“Because the Wabanaki Nations have not enjoyed anywhere near the level of economic growth as that of other tribes in this country, they face an ongoing economic crisis,” Rana told the committee.
Passamaquoddy Chief William Nicholas also argued that monopolization already exists in the gaming framework, when asked if the bill would create a tribal monopoly over online gaming.
“We’ve watched out-of-state corporations monopolize Maine’s gaming industry for decades,” Nicholas said in his testimony Monday. “Those casinos deliver tens of millions of dollars to out-of-state corporations every year… We all know that most of the revenues go right to Las Vegas and Kentucky, where they will never help Mainers again.”
Michael Ventre, senior manager for state government relations at FanDuel, testified that while the gambling company supports Maine internet gaming, tribes having sole possession of licenses “would not create the healthy, regulated market that we have seen in many other states.”
“The lack of legitimate choice for the consumer can encourage individuals to seek alternative methods outside of the regulated landscape,” Ventre wrote in his testimony.