Churchill Downs Strikes Back Against Maine’s Tribal iGaming

Maine’s decision to grant local tribes exclusive rights to offer online casino gaming does not sit well with Churchill Downs, judging from the operator’s decision to challenge the law in court. The company argued that online gaming would undermine brick-and-mortar casinos, such as its Oxford Casino, which have been major contributors to the local economy.

Maine Became the Eight iGaming State

For context, Maine moved forward with its iGaming legislation, opting for a tribal approach. While legal online casinos remain fairly rare in the USA, the Pine Tree State has opted to become the latest one to permit legal iGaming.

Under the measure, which was signed into law by Gov. Janet Mills a few weeks ago, the state’s four federally recognized tribes will be allowed to offer online casino gaming to players in the state.

For reference, the authorized tribes include the following:

• Houlton Band of Maliseet Indians
• Mi’kmaq Nation
• Passamaquoddy Tribe
• Penobscot Nation

However, Oxford Casino and its parent company have declared this law unconstitutional and are now seeking an injunction to stop it.

Oxford Casino: The Law Doesn’t Give Everyone a Fair Chance

On January 23, the casino filed a complaint in the US District Court for the District of Maine, postulating that iGaming would deal a “gut-wrenching blow” to traditional casino businesses. Oxford Casino, which supports almost 400 jobs, argued that brick-and-mortar properties have been major economic drivers and would suffer the most if iGaming becomes a reality.

The Churchill Downs property quoted recent studies that suggest the introduction of iGaming could deprive the state of hundreds of jobs and millions of dollars in tax revenue and economic contributions. For context, Oxford Casino paid over $40 million in taxes in 2025 alone. According to the figures cited by the casino, other states that have launched online casino gaming have experienced an average decline in traditional casino gaming of 16%.

While a commercial iGaming market would allow Oxford Casino to remain competitive by launching its own online wagering offering, the tribal nature of the new law prevents it from doing so.

Oxford Casino regretted that Maine has decided to allow iGaming in a way that doesn’t allow everyone a “fair chance to compete.”

Elsewhere, a court in Minnesota ruled in favor of controversial dealer-assist gaming machines at the Running Aces Casino Hotel Racetrack, despite earlier complaints by tribal authorities.