Maine Casino Files Federal Lawsuit To Block iGaming In The State

One of Maine’s two brick-and-mortar casinos has filed a federal lawsuit seeking to block the state’s new online casino law, according to a report in the Portland Press Herald.

Oxford Casino Hotel filed the lawsuit late last week in U.S. District Court, challenging LD 1164, the law that grants the Wabanaki Nations exclusive rights to operate online casino games in Maine. The suit names the director of the Maine Gambling Control Unit and asks the court to halt the law’s implementation.

Gov. Janet Mills allowed LD 1164 to become law earlier this month without her signature. When implemented, Maine will become the eighth state to offer legalized online casino.

In its complaint, Oxford Casino argues the state unlawfully granted what it describes as a “race-based monopoly” to the tribes.

“Promoting iGaming through race-based preferences deals a gut-wrenching blow to Maine businesses like Oxford Casino that have heavily invested in the state and its people,” the lawsuit states, according to the Press Herald.

Not equal?

The casino alleges the law violates the Equal Protection clauses of both the U.S. and Maine Constitutions, which prohibit discrimination based on race. Oxford Casino, which employs 364 people, argues it is being shut out of a potentially lucrative new gambling market, the Press Herald reported.

Tribal leaders rejected the casino’s take on the law, arguing the lawsuit ignores the state’s long-standing exclusion of the Wabanaki Nations from casino gaming.

“Wabanaki Tribes have been closed out of this market until Governor Mills initially supported the Tribes in sports betting and now iGaming,” said Chief William Nicholas of the Passamaquoddy Tribe at Motahkomikuk (Indian Township) in a written statement to the paper. “For years, out-of-state interests have been enriched in their monopoly and now are attacking Mainers who are here to support and keep Maine economics in Maine.”

Rep. Aaron Dana, who represents the Passamaquoddy Tribe in the Maine Legislature, called the lawsuit’s claims inconsistent with the state’s existing gambling structure.

“I think it’s very hypocritical,” Dana told the Press Herald.

Dana said the tribes’ exclusive right to offer online casino gaming is no different from the exclusive rights already held by Oxford Casino and Hollywood Casino to operate brick-and-mortar casinos in Maine. He added that the law is only “race-based,” because any legislation affecting the Wabanaki Nations must explicitly name the tribes.

The lawsuit follows a similar policy decision in 2023, when Maine granted the Wabanaki Nations exclusive rights to operate sports betting. 

Under LD 1164, the Penobscot Nation, Passamaquoddy Tribe, Aroostook Band of Micmacs, and Houlton Band of Maliseet Indians may each partner with a single licensed online casino platform. Licenses cost $50,000 annually and online casino operations may begin 90 days after the current legislative session adjourns.

An attorney representing Oxford Casino declined to comment on the lawsuit to the Press Herald. The governor’s office said it does not comment on pending litigation.