A planned legislative bill that would legalize Maine's online casinos took a step forward after new attention during the state's special legislative session.
Key Takeaways
- LD1164 is now being considered after passing the Veterans and Legal Affairs committee
- The bill would establish a regulatory framework for online casino gaming
- The Wabanaki Nations would have full control of internet gaming in the state
LD1164, introduced in March 2025, initially stalled in April when it was tabled in the Veterans and Legal Affairs Committee, but was returned to consideration and passed by the committee on an 8-5 vote.
It also outlines the regulatory framework for establishing legal online casinos in Maine, including an 18% tax on gaming revenue. The lawmakers estimate that the tax could raise $1.8 million in the 2025–26 budget year and double to $3.6 million in 2026–27.
Tax revenues would be applied to fund public health initiatives like gambling addiction prevention programs, veteran housing, and opioid use disorder treatment.
Maine currently has two commercial casinos: Oxford Casino, owned by Churchill Downs Inc., and Hollywood Casino Bangor, owned by Penn Entertainment. Both owners have been in opposition to an expansion of online gambling due to financial and job risks.
According to estimates supplied by the Oxford Hills Chamber of Commerce, legalization of online casinos would result in up to $67 million in lost annual revenue at the two facilities and the elimination of approximately 400 jobs. The two casinos bring in between $150 million and $170 million in annual revenue.
Despite this resistance, the bill's proponents claim it provides a rare opportunity for economic empowerment, particularly for the tribal population in Maine. The Wabanaki Nations, which comprise four federally recognized tribes within the state, have historically been excluded from casino ownership under terms of the 1980 Maine Indian Claims Settlement Act.
Tribes to get full iGaming control
The law in place would grant the tribes a monopoly over operating online casino websites, similar to when the state legalized sports betting in 2023.
With the existing sports betting model, three of the Wabanaki tribes have formed agreements with Caesars Entertainment, and the fourth with DraftKings, for online sports betting. The deal allows the tribes to get 50% of gross receipts.
Although the bill has gained traction in the legislature and has backing from tribal leaders and some lawmakers, it faces the hurdle of Gov. Janet Mills.
She stated she would veto any iGaming bill and cited several reasons for doing so. The House voted down a similar online gaming bill in April 2024, placing it in legislative limbo before it could even arrive on Gov. Mills' desk.
The Maine legislature is currently in special session, where bills like LD1164 can be taken up, debated, and possibly carried over into the next legislative session if they are not addressed.
