A bill proposing to legalize Maine online casinos has made progress again after being tabled in April. The state is currently in a special legislative session, and bills can be carried over to next year, if needed.
LD1164 was introduced in March but stalled in the Veterans and Legal Affairs Committee in April. Lawmakers returned to discuss the bill in the special session and voted 8-5 in favor of the proposal.
Under the stipulations, Maine would collect an 18% tax on legalized online casinos. The state would use the funds to support gambling addiction prevention, veteran housing, and opioid use treatment.
The bill estimates the 18% tax would generate $1.8 million in the 2025-26 fiscal year, bumping up to $3.6 million in 2026-27.
State casino operators oppose online casinos
Currently, Maine has two commercial casinos, Oxford Casino and Hollywood Casino Bangor, and the operators Churchill Downs (Oxford) and Penn Entertainment (Hollwood) previously came out against the proposed online casino expansion in the state.
The Oxford Hills Chamber of Commerce estimates that legalizing online casinos could cost the two operators up to $67 million in lost revenue and eliminate about 400 jobs.
Combined, the two casinos generate between $150 – $170 million annually. In February this year, revenue saw a 27% decrease from February 2024, dropping to $10 million. However, April saw a 7.2% increase, up to $13.8 million from $12.87 million last year.
Maine online casinos to create wealth for tribes
Unlike many states, Maine state law restricts the state’s tribes from running casinos. The Maine Indian Claims Settlement Act (1980) places restrictions on the four state tribes, collectively known as the Wabanaki Nations.
The bill is titled “An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming” and has the backing of tribal leaders.
Chief William Nicholas Sr. of the Passamaquoddy Tribe at Motahkomikuk commented that the legalization would give tribes much-needed revenue and prevent residents from gambling on offshore casinos.
About the money being gambled by Maine residents on unregulated platforms, Nicholas Sr. commented, “Those revenues should be benefiting Mainers, not shadowy offshore companies or whoever runs the many apps that are currently available for illegal internet gaming.”
Tribes want expansion of sports betting
Maine sports betting was legalized through the Wabanaki Nations in 2023, and tribes want casino gaming to follow the same pattern. Three tribes have partnered with Caesars and one with DraftKings to offer online sports betting.
Under the partnerships, the tribes collect half of all gross receipts from sports betting. Last year, this amounted to just under $20 million from gross gaming revenue of $43.5 million and gross receipts of $39.2 million. The state, meanwhile, collects 10% of revenue, amounting to $4.35 million.
With a higher tax rate on online casinos and the potential for greater revenue generated by the sector, many lawmakers and the tribes are pushing for legalization. Gov. Janet Mills, however, has said she would veto iGaming bills.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
