Maine Tribes Join Legal Battle Over Online Gaming Rights
Maine Tribes Granted Online Gaming Rights
In January, the Wabanaki Nations in Maine received official permission to operate online gambling platforms to boost economic progress and invest in tribal communities. This was made possible when Governor Janet Mills signed LD 1164 into law, officially allowing these tribes to run or partner for online casino operations.
Legal Challenge Emerges
The legislation, titled “An Act to Create Economic Opportunity for the Wabanaki Nations,” gave exclusive online gaming rights to the tribes. Not everyone agreed with this decision, as Churchill Downs Incorporated, a major commercial gaming company, challenged the law in court.
Tribes Become Defendants in Lawsuit
A federal judge has now permitted the Wabanaki Nations to formally participate in the lawsuit as defendants, defending the law that grants them exclusive online gaming privileges. The lawsuit was initiated by the operator of Oxford Casino.
Churchill Downs alleges that the law violates equal protection provisions under both the U.S. and Maine constitutions by granting exclusive gaming rights based on tribal identity, which they consider unfair favoritism.
Previously, Maine lawmakers had also provided the tribes with a monopoly over online sports betting, further cementing their role in the state’s digital gaming sector.
Impact on Commercial Casinos
The ruling has had a significant effect on commercial casinos such as Oxford Casino and Hollywood Casino in Bangor, which are barred from offering online gaming, though they continue to operate physical sportsbooks.
According to the complaints from Churchill Downs, this race-based preference to encourage online gaming presents a “gut-wrenching blow” to local businesses like Oxford Casino, which have heavily invested in Maine’s community and economy.
The company also warns that the rise of online gambling could decrease revenue at brick-and-mortar casinos, citing various studies indicating revenue drops following the introduction of digital gaming platforms.
Meanwhile, the tribes emphasize their perspective, expressing concerns that the lawsuit threatens their long-standing efforts to promote self-governance and economic growth. Lenny Powell, the tribal legal representative, describes the case as an unfortunate attempt to weaken productive government-to-government partnerships and highlights the positive outcomes of empowering tribal nations.
Complex Legal Background
The dispute is made more complicated by Maine’s unique legal framework. Tribal gaming rights here are governed by the Maine Indian Claims Settlement Act, which subjects tribes to more direct state oversight and limits certain sovereign powers.
This arrangement differs from other states where tribal gaming is often shielded by federal law, making Maine’s tribes more vulnerable to legal challenges.
Public Opinion on Online Gaming
Adding to the complexity, a recent poll by Lake Research Partners for the National Association Against iGaming found that 64% of Maine voters oppose legalizing online gaming, with 49% expressing strong opposition, reflecting a divide in public sentiment on this issue.
