The Oxford Casino Hotel, owned by Churchill Downs Inc., has filed a lawsuit in the US District Court seeking to block Maine’s new iGaming law, LD 1164. The measure, allowed to take effect by Governor Janet Mills without her signature, grants the state’s four recognised tribes exclusive rights to operate online casino gaming.
LD 1164 is a new law in Maine that legalises online casino gaming and gives the Wabanaki Nations exclusive rights to operate it. The casino argues the law, dubbed “The Monopoly Law,” violates state and federal constitutions and could harm Maine’s economy. The complaint warns of lost jobs, reduced wages, and declining revenues, citing a study that found brick‑and‑mortar casinos in other states saw a 16% drop after iGaming was introduced.
Maine’s new iGaming law
LD 1164 grants the Wabanaki Nations exclusive authority over online casino gaming in Maine. While they may work with platform operators, the licences remain under tribal control. Online casino gaming allows people to play games such as slots, blackjack, and roulette through apps or websites, without needing to visit a physical casino.
In 2003, Maine voters rejected a tribal casino but allowed slot machines at Bangor Harness Racing, creating the state’s first racino that later grew into a full casino with table games. After voters narrowly authorised the Oxford Casino in 2010, Maine’s table‑games sector was dominated by two privately operated casinos.
Unlike most states, tribes in Maine cannot operate casinos under the Indian Gaming Regulatory Act of 1988 because of the 1980 land claims settlement, which gives the state greater authority over tribal affairs. The Wabanaki Nations have repeatedly tried to open casinos, from a proposal in Calais in 1994 to a larger plan in 2003. All were rejected, with tribal leaders arguing that discrimination played a role in these defeats.
Churchill Downs opposition
Oxford Casino has filed a lawsuit against Maine’s new iGaming law, arguing that granting exclusive rights to the Wabanaki Nations is discriminatory and violates constitutional protections. The case cites the Equal Protection Clauses of both the US and Maine constitutions, claiming online casino gaming should be open to all operators.
Churchill Downs, which owns gaming properties across the country, also helped form the National Association Against iGaming, a group that contends online casinos harm jobs and local economies and has worked to slow similar efforts in states such as Maryland.
Tribal leaders push back
Tribal leaders have criticised the lawsuit, noting that Maine already grants exclusive gambling rights to Oxford and Hollywood Casinos. Rep. Aaron Dana described the claim of a “race‑based monopoly” as misleading. From the tribal perspective, the new iGaming law addresses an existing imbalance rather than creating a monopoly, with leaders such as Passamaquoddy Chief William Nicholas arguing that outside corporations are mainly concerned about losing profits that could remain in Maine.
However, Mills allowed LD 1164 to become law without signing or vetoing it. Tribal leaders welcomed the decision, and all five Wabanaki chiefs expressed support, noting it as a rare moment of agreement between the state and tribal leadership despite past disagreements.
Maine’s iGaming status
State officials have not yet filed a response in court, and LD 1164 is scheduled to take effect 90 days after the legislative session ends, no later than 15 April. If put into effect, Maine would join Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia in permitting online casino gaming. Depending on the lawsuit’s outcome and restrictions, apps may launch later this year. In 2023, the state gave tribes sole authority over sports betting, which brought in $66 million. That experience is viewed by some as a model for how online casino gaming could be organised.
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