A fierce legal battle is brewing in Maine, threatening to reshape the state’s gambling landscape. Oxford Casino has launched a federal lawsuit, directly challenging a new law intended to empower the Wabanaki Nations with exclusive control over online casino-style gambling.
The conflict ignited after Governor Mills signaled her support for LD 1164, a bill hailed as a landmark opportunity for economic growth within Maine’s tribal communities. The legislation would grant the state’s federally recognized tribes the sole right to operate online gaming platforms throughout Maine.
Tribal leaders celebrated the impending law as a pivotal moment. Chief William Nicholas Sr. of the Passamaquoddy Tribe described it as an “economic turning point,” promising significant benefits for the Passamaquoddy people and all Wabanaki Nations.
Oxford Casino, however, views the situation drastically differently. Their lawsuit names the Executive Director of the Maine Gambling Control Unit as the defendant, alleging the new law establishes an unfair, “race-based monopoly.”
The casino argues that granting exclusive iGaming rights to the tribes delivers a devastating blow to established Maine businesses like themselves, businesses that have already made substantial investments in the state and its workforce. They claim the law unfairly prioritizes tribal interests over those of other licensed gaming operators.
A study commissioned by The Innovation Group, cited within the lawsuit, paints a grim picture of the potential consequences. It predicts a 16% average decline in revenue for land-based casinos following the introduction of iGaming, leading to job losses, reduced economic output, and diminished tax revenue for vital public services.
The lawsuit doesn’t stop at economic concerns. Oxford Casino contends that creating a racially-defined monopoly violates principles of equal protection under both the U.S. and Maine Constitutions, and represents unconstitutional economic protectionism.
Oxford Casino has been a fixture in Maine’s gaming scene since 2012, operating as one of only two licensed casinos in the state. As a subsidiary of Churchill Downs Incorporated, the company possesses significant resources and a clear determination to fight for its position in the market.
This legal challenge sets the stage for a complex and potentially protracted dispute, one that will likely determine the future of online gambling and the balance of economic power within the state of Maine.
