Maine Lawmakers Revisit House Bill To Give Exclusive iGaming Rights To Wabanaki Nations

A recent bipartisan initiative to legalize online casino gaming in Maine is once again under the legislative microscope. The primary focus of this proposal is a provision that would confer exclusive licensing rights for internet gaming to the Wabanaki Nations, a topic that has provoked significant discussion amongst stakeholders in the state’s gaming industry.

House Bill 1164: A Strategic Move for Maine’s Wabanaki Tribes

House Bill 1164, presented to the Veterans and Legal Affairs Committee by Representative Ambureen Rana (D-Bangor), aims to authorize online gaming (iGaming) while granting operational authority exclusively to Maine’s four federally recognized tribes: the Penobscot, Passamaquoddy, Maliseet, and Aroostook Band of Micmacs. This landmark legislation seeks to curb the unregulated gambling activities that have proliferated through offshore gambling platforms and to stimulate economic development within both tribal and non-tribal communities across the state.

Upon implementation, the proposed legislation would impose a 16 percent tax on revenues generated via mobile gaming, thereby contributing to state funds and enhancing economic prospects for those involved. This move follows the 2022 legalization of online sports betting which allowed Maine’s tribes, through partnerships with industry giants like Caesars Entertainment and DraftKings, to operate online sportsbooks.

However, the exclusive licensing provision has raised eyebrows. The bill stipulates: “Only a federally recognized Indian nation, tribe or band in this State is eligible to obtain a license and operate Internet gaming.” This exclusivity has sparked contention among various stakeholders within the state’s gambling ecosystem.

Steve Silver, the chair of the Maine Gambling Control Board, has voiced concerns regarding the potential socioeconomic consequences of the bill. In a statement, he argued that tribal exclusivity could threaten job stability in privately operated casinos, which are critical to Maine’s economy. “Oxford and Hollywood Casinos employ nearly 1,000 Mainers,” Silver noted, cautioning that legalizing iGaming without allowing participation from these casinos would likely lead to job losses.

Wabanaki Supporters and Industry Allies Rally Behind HB 1164

Proponents of House Bill 1164—including tribal leaders, along with allies from Caesars Entertainment and DraftKings—assert that the bill addresses long-standing inequalities faced by Maine’s tribes. Historically, while many tribes throughout the United States have benefitted from gaming as a means for economic development, Maine’s Wabanaki tribes have been hindered by restrictive regulatory frameworks and a lack of operational casinos on their reservation lands.

Rep. Rana emphasized the economic crisis faced by the Wabanaki Nations, stating, “Because the Wabanaki Nations have not enjoyed anywhere near the level of economic growth as that of other tribes in this country, they face an ongoing economic crisis.”

Passamaquoddy Chief William Nicholas further elaborated on the need for this bill by highlighting the existing monopolistic practices that have long dominated Maine’s gaming landscape. He contended, “We’ve watched out-of-state corporations monopolize Maine’s gaming industry for decades. Those casinos deliver tens of millions of dollars to out-of-state corporations every year… We all know that most of the revenues go right to Las Vegas and Kentucky, where they will never help Mainers again.”

Adding a new dimension to the discussion, Michael Ventre, Senior Manager for State Government Relations at FanDuel, provided testimony expressing that while his company supports the legalization of internet gaming in Maine, the exclusivity of licensing for tribes could hinder market competition. “The lack of legitimate choice for the consumer can encourage individuals to seek alternative methods outside of the regulated landscape,” he cautioned.

Conclusion: A Crucial Crossroads in Maine’s Gambling Landscape

As Maine stands at a crucial juncture in its legislative journey towards online casino legalization, it is imperative that the state considers the multifaceted implications of House Bill 1164. By analyzing the unique challenges faced by its tribal nations alongside the interests of established gaming operators, Maine can work towards a regulatory framework that not only fosters economic growth but also safeguards the integrity of its gaming industry. This nuanced approach will ultimately pave the way for a thriving, responsible gaming environment that benefits all stakeholders involved.