Maine Tribal iGaming Inches Closer to Reality

Maine iGaming is one step away from becoming a reality, although a veto could jeopardize its proponents’ hopes. As the bill heads to Governor Janet Mills’ desk, its future remains uncertain.

Maine iGaming Bill Passes Senate

Earlier this month, Maine’s tribal online casino bill (LD 1164) secured approval from the House and headed to the Senate. Several days later, the Senate deliberated whether iGaming should be taxed at 16% or 18% before finally giving it the go-ahead.

The Senate’s upper chamber had tried to reject the bill but failed to do so with a 17-18 vote. It was thus passed, although the Senate tried to reconsider the vote and failed to do so. However, as the bill has many opponents, some fear that Gov. Mills might opt to veto it.

Wabanaki Nations Seek Gambling Expansion

For context, LD 1164 would allow the four Wabanaki Nations to launch online casino gaming via an iGaming partner. The state, in turn, would take a 16% cut off all iGaming revenues, creating a new tax money stream. According to estimates, this tax rate would result in approximately $3.6 million for the state coffers.

This would answer the tribal nations’ persistent demands for gaming expansion. Tribal supporters say that online casino gaming would allow them to be more independent and generate more money for their communities. Estimates predict that the tribes and their partners could earn up to $18.9 million a year from iGaming.

For context, the Wabanaki Nations are not allowed to run casinos, although they hold exclusive rights to operate online sports betting.

The Bill Faces Potential Veto

Legalizing iGaming has not been a smooth sailing as opponents have continuously tried to reject the bill. The tribal iGaming measure has seen especially strong opposition from commercial operators, including  Penn Entertainment and Churchill Downs which operate land-based casinos in the country and have claimed that tribal iGaming would cannibalize their businesses.

Healthcare institutions, on the other hand, have warned of the adverse effects of online gambling and have asserted that industry expansion could lead to a spike in Maine’s problem gambling rates.

To top it all off, Gov. Mills has previously expressed disagreement with the bill and could possibly opt to veto it. However, as of the time of this writing, she has given no clear indication that this would be the case as her office has only noted that it is monitoring the bill.