Maine internet gaming bill introduced as debates begin

A new internet gaming bill has been put forth in Maine, with advocates asserting that it presents significant opportunities for the Wabanaki Nations, marking a pivotal moment in the state’s gambling landscape.

On March 20th, House Bill 1164 was introduced to authorize internet gaming and related activities in Maine, contingent upon obtaining the necessary licenses. This legislation aims to establish a regulated online gaming environment that could enhance economic prospects for Maine and its tribal nations.

Maine Internet Gaming Bill Backed by Industry and Tribal Leaders

Key stakeholders from the iGaming sector have publicly voiced their support for House Bill 1164. Among them is Joseph Tyrell, Regional Vice President for Government Relations at Caesars Entertainment. He stated, “Today we stand united with the Wabanaki Nations in support of LD 1164. This legislation provides a responsible pathway to create economic opportunities for Maine’s federally recognized tribal nations through a robust state regulatory framework under the Gambling Control Unit.”

Tyrell emphasized that “a well-regulated internet gaming market will generate new revenue for both Maine and the Wabanaki Nations."

Similarly, Matt Scalf, Government Affairs Manager at DraftKings, highlighted the advantages of regulating online gaming. He noted, “Legalizing online gaming not only generates revenue for the state and stakeholders but also implements consumer protections while addressing illegal activities that are proliferating nationwide.” Scalf further pointed to successful models in other states, such as Connecticut, which maintains a reasonable tax rate of 18%, driving positive revenue trends while effectively curtailing unregulated operations.

Tribal leader Pos Basset reinforced these sentiments, arguing that legalizing internet gaming will enable Maine to regulate a practice that is already widespread, redistributing tax revenues to the state and tribal governments. He remarked, “This isn’t about undermining existing casinos but about regulating an activity that is already prevalent outside of Bangor and Oxford casinos. Given that many are already gaming on their devices, it makes sense to leverage this activity for state benefit.”

Concerns Raised by Opponents of House Bill 1164

Despite the vocal support from several industry leaders, critics of House Bill 1164 have raised significant concerns. Steve Silver, Chair of the Maine Gambling Control Board, believes that while he supports the legalization of iGaming, the proposed tax rates are excessively favorable to operators at the expense of Mainers. He stated, “I believe adult Mainers should have the freedom to enjoy legal, regulated gaming in all its forms. However, the flat 16% tax rate, which mirrors sports betting, appears to be a disproportionate concession to iGaming operators, potentially disadvantaging local competition.”

Silver also pointed out that both Hollywood Casino and Oxford Casino could suffer considerable financial repercussions if the bill proceeds, stating, “Excluding Oxford and Hollywood from offering iGaming could monopolize this market, harming consumers and local employment.”

Concerns echo from within the industry itself, as operator FanDuel, represented by Senior Manager Michael Ventre, criticized the current proposals. Ventre indicated that the bill could hinder a competitive marketplace, noting, “This bill mirrors Maine’s existing online sports betting framework, which has limited the market to just two operators when there’s capacity for four.” He called attention to the disparity in market share, where one operator commands approximately 90% of the state’s market. “This lack of consumer choice can drive residents towards unregulated alternatives,” he concluded.

Opposition from Religious and Medical Organizations

The bill has also drawn critique from religious and medical organizations. Dr. Patty Hymanson, speaking on behalf of the Maine Medical Association, raised alarms about the potential for increased gambling addiction if internet gaming is legalized. She presented alarming statistics: “Since Michigan legalized online casinos and sports betting in 2021, calls to the gambling addiction hotline have tripled. The demographics show that two-thirds of these calls are from men, with a significant portion in their 30s and 40s.”

Dr. Hymanson cautioned, “If legalization proceeds, it is imperative to allocate resources for the identification and treatment of gambling addiction.”

Additionally, Nick Adolphsen, Executive Director of the Christian Civic League of Maine, voiced strong opposition, characterizing the proposed legislation as a “moral shift with potentially devastating consequences for Maine families, particularly younger males.” He warned that online gambling exploits vulnerability and could lead individuals down a path where they lose everything—financial stability, hope, and relationships—before realizing the extent of the impact.

Conclusion

The introduction of House Bill 1164 heralds a significant evolution in Maine’s gambling regulations, presenting both potential benefits and challenges. While supporters argue that it can create substantial economic opportunities for the Wabanaki Nations and enhance state revenues, critics emphasize the risks of monopolization, adverse impacts on local casinos, and the pressing need for consumer protections amidst concerns of gambling addiction. As the discourse surrounding this bill continues, stakeholders in the gambling industry and the broader community must weigh the implications of this legislative initiative carefully.