A bill to introduce online casinos to Maine is entering its final stages.
In the past week, both the state’s House and Senate approved Rep. Ambureen Rana’s LD 1164, which seeks to grant exclusive online casino gaming rights to the Wabanaki tribes.
The bill passed the House by an 85-59 vote on 13 June. Meanwhile, a motion to approve the law stalled twice in the Senate before finally passing by a vote of 18-17 on 16 June.
Under the proposed legislation, the Penobscot Nation, Passamaquoddy Tribe, Maliseet Nation and Mi’kmaq Nation will be authorised to engage with commercial entities to offer online casino games such as slots, poker, blackjack and roulette.
This mirrors the framework that allows the same tribes to offer online sports wagering, which they do through partnerships with DraftKings and Caesars.
Although welcomed by the tribes, the operators of the state’s two commercial casinos, Churchill Downs and PENN Entertainment, have actively opposed the measure.
They argue that introducing online casinos via a tribal monopoly would damage their land-based gaming revenues through cannibalisation.
Opposition has also come from within the Maine Gambling Control Unit (MGCU), which oversees sports betting and would be tasked with doing the same for online casinos under the new legislation.
In March, Milton Champion, the MGCU’s Executive Director, stated in written testimony: “With the current gambling options in Maine and sports wagering being only in its second year, I do not believe that the addition of igaming is warranted at this time.
“Additionally, with any gambling expansion comes an increase in harm to problem gamblers. As a result of these concerns, the current administration is not in favour of any expansion of gambling.”
If passed, Maine would become the eighth US state to approve iGaming, joining New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island.
Under the legislation, online casino gaming would be taxed at 16%, higher than the 10% online sports betting tax rate. That taxable revenue would go towards services such as gambling addiction programs and substance use disorder supports, among others. The tribes would keep the rest for their own use.
