Maine Tribes Join Lawsuit Over Online Gaming Rights

In January, the Wabanaki Nations in Maine, US, were officially allowed to “operate online gambling to support economic development and investments in Tribal communities”, as per Governor Janet Mills’ decision to turn LD 1164 into law.

The respective bill, called “An Act to Create Economic Opportunity for the Wabanaki Nations,” offered tribes the exclusive right to operate or partner for online casino platforms. As expected, not everyone agreed, and Churchill Downs Incorporated went on to challenge that decision in court.

Now, a federal judge has allowed the Wabanaki Nations to intervene in the ongoing lawsuit that could reshape the future of online gaming in the state.

Tribes Can Be Formal Defendants 

The decision means the tribes can now formally take part in the case as defendants, standing behind the law that grants them exclusive rights to operate online gaming. The lawsuit was brought earlier this year by the company that operates Oxford Casino.

Churchill Downs claims that the law violates equal protection principles under both the US Constitution and Maine’s constitution, saying that granting exclusive online gaming rights to the tribes would unfairly favor one group based on identity.

Maine lawmakers had already granted the tribes a monopoly on online sports betting, further strengthening their position in the state’s digital gaming market.

“Gut-Wrenching Blow to Maine Businesses”

For commercial operators like Churchill Downs, the impact has been significant. Its Oxford Casino, along with Hollywood Casino in Bangor, has been excluded from offering online gaming, although both venues can still operate retail sportsbooks on-site.

In its complaint, Churchill Downs said the policy “promoting iGaming through race-based preferences deals a gut-wrenching blow to Maine businesses like Oxford Casino that have heavily invested in the state and its people.” 

The company also argues that online gaming could reduce revenue at physical casinos, pointing to a series of studies suggesting declines after the introduction of digital gambling platforms.

The tribes, however, regard things very differently, with their legal team saying the lawsuit could threaten their lengthy efforts to strengthen tribal self-governance and economic development. 

Lenny Powell, who represents the tribes, called the case “an unfortunate effort to undermine Tribal-state partnership.”

“It seeks to undermine the legal basis for constructive government-to-government policy collaboration, despite decades of data showing that tribal and nontribal communities alike are stronger when Tribal nations are empowered in their pursuit of self-determination,” he added.

Complex Legal Framework

Maine’s legal framework makes the case especially complex. Unlike many other states, tribal gaming rights in Maine are limited by the Maine Indian Claims Settlement Act, which subjects tribes to more direct state control and restricts certain sovereign powers.

That distinction could prove crucial as the case moves forward. While tribal gaming arrangements in other states are often protected under federal law, Maine’s system leaves more room for legal challenges.

Meantime, a poll conducted by Lake Research Partners on behalf of the National Association Against iGaming revealed that 64% of Maine voters oppose the legalization of iGaming, with 49% strongly opposing it.