Maine Online Casinos Could Be Legalized As Bill Makes Positive Steps

A recent legislative development in Maine has reignited discussions around the legalization of online casinos, signaling a potential shift in the state’s gaming landscape. Despite being tabled in April, a bill (LD1164) aimed at authorizing online casinos has made significant strides during the ongoing special legislative session, with the possibility of further consideration in the next legislative year if necessary.

Legislative Progress for Online Casinos

Initially introduced in March, LD1164 stalled in the Veterans and Legal Affairs Committee but resurfaced when lawmakers reconvened, resulting in an 8-5 vote in favor of the proposal. If passed, Maine would impose an 18% tax on online casino revenues, with the anticipated funds earmarked for critical initiatives such as gambling addiction prevention, veteran housing, and opioid treatment.

Projected Revenue: The state estimates that this tax could yield approximately $1.8 million in the 2025-26 fiscal year, potentially increasing to $3.6 million in 2026-27.

Opposition from State Casino Operators

Maine currently hosts two commercial casinos: Oxford Casino and Hollywood Casino Bangor. Operators Churchill Downs (Oxford) and Penn Entertainment (Hollywood) have publicly opposed the expansion of online casinos, raising concerns about the potential financial impact.

Expected Revenue Loss: The Oxford Hills Chamber of Commerce projects that legalizing online casinos may cost these operators up to $67 million in revenue, jeopardizing an estimated 400 jobs.

This is particularly relevant as combined revenues for both casinos range between $150 million and $170 million annually. Notably, casino revenues showed a decline of 27% in February 2024, with a recovery of 7.2% noted in April, signaling the volatile nature of this sector.

Economic Opportunities for Tribes

Unlike many states, Maine’s laws restrict its tribes from operating casinos. The Maine Indian Claims Settlement Act of 1980 imposes limitations on the Wabanaki Nations, which comprise four state tribes. The new bill titled “An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming” is backed by tribal leaders who see this as a vital step towards economic empowerment.

Quotes from Tribal Leadership: Chief William Nicholas Sr. of the Passamaquoddy Tribe at Motahkomikuk emphasizes the urgency of this legislation: "Legalization would provide tribes with essential revenue and curb the outflow of funds to unregulated offshore casinos."

Expanding Sports Betting Opportunities

Maine legalized sports betting in 2023, largely supported by the Wabanaki Nations. Currently, three tribes have partnered with Caesars and one with DraftKings to facilitate online sports betting. Under these agreements, tribes retain 50% of gross receipts from sports betting.

Financial Overview: Last year, these partnerships generated nearly $20 million from a gross gaming revenue of $43.5 million, with the state collecting 10%, or $4.35 million, of the revenue.

With a higher tax rate on online casinos expected to generate significant revenue, many lawmakers and tribal leaders advocate for the proposal. However, opposition remains, with Governor Janet Mills indicating a willingness to veto iGaming bills.

Conclusion

The movement towards legalizing online casinos in Maine reflects broader trends in the gambling industry, where states are increasingly recognizing the potential economic benefits of regulated online gaming. With both challenges and opportunities on the table, further developments are anticipated as stakeholders engage in ongoing discussions about the future of gambling in the state.

About the Author

Adam Roarty is a seasoned writer with over five years of experience in the gambling industry. His contributions to platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News reflect his extensive knowledge of sports betting and online gaming. Adam specializes in emerging trends and legislative changes within the dynamic landscape of U.S. betting, offering insights into key areas such as prediction markets and sweepstakes.