One of Maine’s two casinos has launched a legal challenge against the passage of the state’s online casino bill.
The Oxford Casino Hotel and its owner, Churchill Downs, have filed a lawsuit to block the implementation of the law, claiming that the decision to limit licensing to Maine’s four federally recognised tribes breaches the US and Maine constitutions.
The legal action brought against the Maine Gambling Control Unit and its Executive Director, Milton Champion, argues that the monopoly will strike a “gut-wrenching blow” to Maine businesses like the Oxford Casino, leading to loss of revenue and jobs for local residents.
“Creating a race-based monopoly for in-state businesses violates equal protection, flouts constitutional restrictions on economic protectionism, and fails scrutiny under both the United States and Maine Constitutions,” states the lawsuit.
The new bill, which was allowed to pass by Governor Janet Mills earlier this month, grants exclusive rights to the Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of Maliseet Indians and the Mi’kmaq Nation, each of which will be able to partner with one platform provider.
The Oxford Casino was among the stakeholders that expressed strong opposition to the terms of the online casino bill.
Within its lawsuit, Churchill Downs reiterated the company’s belief that iGaming should remain illegal in Maine. However, the company stated that if the vertical were to become regulated, it would wish to apply for a licence – something it is currently prohibited from doing.
“There are four federally recognised Indian Tribes within the State—so there are exactly four available licenses. The State has no reason to single out these four tribal businesses over any other businesses for online gaming licenses in the State, especially given that the State has many other tools to assist Tribes, including use of state tax dollars. This is an impermissible monopoly,” the legal action reads.
“If the Maine legislature has made the choice to allow iGaming within the state, it should give everyone a fair chance to compete, without regard to race or citizenship, as both the United States and Maine Constitutions require.”
Strong feelings towards the move have also surfaced from the National Association against iGaming (NAAiG), an organisation of which Churchill Downs is a founding member.
The group has vowed to overturn the law through Maine’s People’s Veto Process, claiming the move to approve the bill disregarded “overwhelming public opposition, expert warnings from regulators, and a proven gaming framework that has delivered meaningful benefits to Maine communities and tribal nations for more than a decade.”
Data from the NAAiG included within the lawsuit claims the decision to implement regulated iGaming will lead to 378 job losses, $22m in lost labour and $60m in lost value throughout the Maine economy.
In comparison, government estimates suggest that the state will receive $1.8m in tax revenue in the 2025/26 financial year, rising to over $3.6m the following year.
For now, the launch of the US’s eight iGaming market is expected in late 2026, however, strong opposition and concerted legal action may yet thwart these ambitions.
