Maine inched closer to legalizing online casino gaming, but a major obstacle remains.
Key takeaways
- LD 1164 calls for an 18% tax on online casino gaming operators.
- Gov. Janet Mills could veto the bill, likely ending Maine’s chances of legalizing iGaming this year.
- The proposal took a winding political road to reach the special appropriations table.
The state’s Senate, concurring with the House, placed approved LD 1164, an iGaming bill, on the “special appropriations table” Wednesday. The proposal is one of 100 bills headed to Gov. Janet Mills' desk, the Maine Morning Star reported. Mills has 10 days to sign and enact the iGaming measure.
However, Mills could veto the bill, and the legislature, which already adjourned, would likely not override it this year. While she hasn’t spoken publicly about the legislation, Mills hasn't favored other gaming initiatives. She shot down two sports betting attempts before reaching a compromise to allow legal sportsbooks to operate in 2022.
There is already noted opposition to the proposal. The Maine Department of Health and Human Services and the Gambling Control Board Chair testified against the bill, offering concerns about problem gambling and economic impacts to in-person casinos. In a state where DraftKings and Caesars operate online sports betting through tribal partnerships, FanDuel, Fanatics, and BetMGM also argued against the law.
Creating ‘economic opportunity’
LD 1164 is “an act to create economic opportunity for the Wabanaki Nations through internet gaming.” Four licenses would go to the Passamaquoddy Tribe, Penobscot Nation, Mi'kmaq Nation, and Houlton Band of Maliseet Indians. The tribes would then partner with iGaming operators.
DraftKings and Caesars both operate online casinos in other U.S. jurisdictions, making them likely candidates to benefit immediately from legal iGaming in Maine.
Online casino companies would pay the state an 18% tax rate on their adjusted gaming revenue. That would generate an estimated $1.8 million in Year 1 and $3.6 million in fiscal year 2026-2027, according to a fiscal note added to the bill.
Maine’s online sports betting operators generated over $93.7 million in income from more than $835 million in bets since 2023. The Pine Tree State filled its coffers with over $9 million from the 10% tax rate on sportsbooks.
Windy road
Getting LD 1164 to Mills’ desk wasn’t easy. The House committee killed the bill in April, but it was resurrected during June’s special session, when it was amended to increase the tax rate from 16% to 18%.
After passing the House, the Senate pushed it through without a majority vote, leaving the House to enact it. Sen. Peggy Rotundo motioned to place the measure on the special appropriations table, stalling it while lawmakers were still writing the state budget.
Rotundo abstained from voting on passing the proposal, leaving it to fail by one vote, before keeping it alive by voting against a motion to reject the bill. After Rotundo removed it from the special appropriations table, the Senate finally passed it and moved it along.
