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Read Full BioA bill that proposes to legalize online casinos in Maine exclusively through the Wabanaki Nations was voted in favor in the House on Thursday.
LD1164 was introduced by Rep. Ambureen Rana (D-Bangor) and Sen. Marianne Moore (R-Calais) in March. After being tabled in April, it is under consideration in a special legislative session that runs until June 18.
The House voted 85-59 in favor of the proposal, which has been backed by the Wabanaki Nations to increase their ability to offer online gambling.
Online Casinos to Follow Maine Sports Betting Model
The bill still faces further votes in the House and Senate before it can be enacted. If it makes it through the legislative process, each of the four tribes in the Wabanaki Nations would be allowed to contract with a single iGaming operator to offer games like poker, blackjack, roulette, and slots.
Under the proposal, tribes will pay an 18% revenue tax to the state, which is estimated to generate $1.8 million in the first year, rising to over $3 million annually thereafter.
Sports betting is already legal through the tribes, which sees the four tribes partner with an online sportsbook. The tribes pay $200,000 for a four-year online sports betting license as well as 10% of revenue in taxes.
Rep. Brian Reynolds, the tribal representative for the Houlton Band of Maliseet Indians, commented that the model has been a success. Quoted in local media, Reynolds said: “We know how to do this the right way. We’ve seen how the regulation of sports wagering has worked in Maine quietly, efficiently, with no disruption to local communities. I-gaming will be no different. We are asking for the chance to build.”
Tribes back proposal to reduce illegal gambling
Chief William Nicholas Sr. of the Passamaquoddy tribe backs the bill to benefit Mainers and reduce the impact of illegal gambling websites.
He commented: “The lost business opportunity for a legal and state-regulated entity is in the tens if not hundreds of millions of dollars per year.”
“Those revenues should be benefiting Mainers, not shadowy offshore companies or whoever runs the many apps that are currently available for illegal internet gaming.”
The Maine Gambling Control Unit (GCU) issued a public warning this week about illegal casino platforms. In a press release, the GCU stated: “The Gambling Control Unit wants to make it very clear: no online casino, iGaming, or sweepstakes site is licensed by the Gambling Control Unit.”
The statement added: “The Gambling Control Unit cannot provide assistance or intervention in cases of disputes regarding winnings or other account issues arising from participation in illegal iGaming.”
Bill still faces strong opposition
The legislation still faces obstacles with opponents warning that legalization through the tribes will negatively impact commercial casinos in the state.
Maine Gaming Control Board Chair Steve Silver commented in a recent hearing that, “Oxford and Hollywood Casinos employ nearly 1,000 Mainers. Legalizing iGaming without permitting them to participate will lead to job cuts — I am willing to bet on it.”
The Oxford Hills Chamber of Commerce estimates that legalizing online casinos could result in up to $67 million in lost revenue for the two operators and eliminate approximately 400 jobs.
Oxford Casino representative Dan Walker voiced the company’s opposition to the legislation, stating, “This bill would create a gaming monopoly for the Wabanaki Nations with little economic benefit to Maine.”
Governor Janet Mills has also expressed concern over legalizing iGaming and previously stated that she would veto any bills that reach her desk.
The bill, therefore, still has a long way to go before online casinos in Maine become a reality. But the approval in the House marks progress on the issue that was rejected in a vote last year 75-70.
