After a more than two-year hiatus, the US has added a new iGaming state after Maine’s Governor, Janet Mills, announced her approval of a bill to legalise online casino in the state.
Maine becomes the eighth state to legalise iGaming, alongside New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, Rhode Island and Delaware.
LD 1164 will grant exclusive rights to Maine’s four federally recognised tribes to operate online casino platforms, mirroring similar legislation approved for online sports betting in 2022.
The Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of Maliseet Indians and the Mi’kmaq Nation will each be able to partner with one platform provider and will pay a tax rate of 18% of gross gaming revenue once live.
On the decision, Gov. Mills said: “I considered this bill carefully, and while I have concerns about the impacts of gambling on public health, I believe that this new form of gambling should be regulated, and I am confident that Maine’s Gambling Control Unit will develop responsible rules and standards to hold providers of this new form of gambling accountable while ensuring that Maine’s tribes benefit from its operations.”
Strong opposition remains
Yet before Maine can become a fully established iGaming market, there could still be hurdles to overcome.
Most notably, throughout the legislative process, there has been strong opposition to the bill from Maine’s two land-based casinos, anti-gambling groups, the state’s own Gambling Control Board and even some of the industry’s largest operators.
Major concerns surrounding the bill centre on the potential economic impact on Maine’s land-based casinos, as well as the effect of creating a monopoly on the sector caused by limiting the number of platforms available in the state.
FanDuel, speaking on behalf of BetMGM and Fanatics, warned lawmakers during the legislative process that the bill “will not create the healthy, regulated market that we have seen in many other states”.
Maine is not unusual in limiting the number of platforms it will allow as part of legalising iGaming. Only New Jersey, Pennsylvania, Michigan, and West Virginia have a market with five or more operators.
Meanwhile, Connecticut is limited to DraftKings and FanDuel, while Bally Bet and BetRivers hold a monopoly in Rhode Island and Delaware, respectively.
Since the successful passage of the bill, the National Association against iGaming (NAAiG) has vowed to overturn the law through Maine’s People’s Veto Process.
The organisation stated on LinkedIn: “Governor Janet Mills’ decision to reverse her long-standing opposition to online casino gambling and allow the iGambling bill on her desk to become law represents a clear break from the Governor’s previously stated position and disregards overwhelming public opposition, expert warnings from her own regulators, and a proven gaming framework that has delivered meaningful benefits to Maine communities and tribal nations for more than a decade.”
Previous polling commissioned by the organisation revealed that 64% of Maine voters opposed legalising iGaming, with 49% saying they are strongly opposed, while only 16% said they support legalisation.
Efforts to overturn new laws using the people’s veto have had mixed results. The most recent example of a successful effort dates back to 2018, when Maine voters successfully repealed a law that would have delayed the implementation of ranked-choice voting.
More recently, campaigners’ efforts to veto Maine’s 2025 state budget failed to gain enough signatures.
Economic uplift
While hesitation remains for opponents of the bill, the economic benefits of such legislation remain clear.
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 comparison, in 2024, Maine’s online sports betting market generated $55.4m in revenue, meaning the state collected approximately $5.54m in tax at a rate of 10%.
These figures suggest that the government’s estimations may be on the cautious side, and it could stand to gain an even greater windfall if the market enjoys strong engagement once established.
Following the passage of the bill, the law will come into effect 90 days after Maine’s legislative session ends in mid-April, meaning the launch of the market is expected in late 2026.
DraftKings, partnered with the Passamaquoddy tribe, dominates Maine’s sports betting landscape, bringing in 82% of online revenue. Meanwhile, Penobscot, Maliseet and Mi’kmaq tribes have a joint partnership with Caesars Sportsbook.
Given that the two operators have extensive iGaming operations in other states, it is likely that the two will remain the major players in Maine’s newly established iGaming market.
However, the economic opportunity presented by the legalisation means other major operators are likely to make a play to establish a tribal partnership in the state.
