Just two weeks after Maine allowed a new tribal iGaming law to take effect, Oxford Casino Hotel has filed a federal lawsuit to block its enforcement.
The statute, LD 1164, grants the state’s four recognized Wabanaki Nations the exclusive right to offer online gaming.
Constitutional and Economic Arguments
In its 19-page complaint filed in U.S. District Court, Oxford Casino labeled the bill “The Monopoly Law,” alleging it violates state and federal constitutions. The casino, owned by Churchill Downs Inc., argues that the law deals a “gut-wrenching blow” to Maine businesses that have heavily invested in the state.
The legal challenge cites several economic concerns:
- Revenue Decline: A study by The Innovation Group suggests brick-and-mortar revenues could drop by 16% in states with iGaming.
- Job Losses: The suit alleges the law could lead to nearly 380 lost jobs and $22 million in lost wages.
- Tax Impact: Last year, Oxford Casino Hotel contributed $40 million in taxes to the state; the suit warns this revenue is now at risk.
A Battle for Access
While the lawsuit opposes the current tribal exclusivity, it also signals a desire for broader legalization. “Churchill Downs Incorporated would be interested in applying for an iGaming license in Maine… but it is not eligible,” the complaint states.
If the law survives the challenge, Maine will join seven other states, including Michigan, New Jersey, and Pennsylvania, in offering statewide online casino gaming.
