Maine Casino Sues State Over Tribal iGaming Monopoly

David Moore · 2026-01-29

Just weeks after Maine legalized online casino gambling, a major commercial casino is taking the state to court. Oxford Casino Hotel, owned by Churchill Downs, filed a lawsuit against the Maine Gambling Control Unit (MGCU). They're challenging what they call a "race-based monopoly" that could reshape the state's gambling landscape. ### The Core of the Legal Battle At the heart of this dispute is iGaming bill LD 1164. The law grants exclusive online casino rights to Maine's four Wabanaki Nations tribes. For Oxford Casino, this means being completely shut out of the digital gambling market they were hoping to enter. They argue this isn't just bad business—it's unconstitutional. The lawsuit claims Maine violated both US and state Equal Protection Clauses by creating what Oxford describes as discriminatory, race-based preferences. "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 legal filing states. They're projecting losses in the millions, claiming the exclusive arrangement cuts them out of any iGaming action. ### The Tribal Perspective and Political Backdrop Meanwhile, tribal leaders see this differently. Earlier this month, Passamaquoddy Tribe Chief William Nicholas praised Governor Janet Mills as "the greatest ever" for allowing LD 1164 to become law. The Governor didn't actively sign the bill—she simply didn't veto it, which let it pass. This isn't Mills' first involvement with tribal gaming. She was also Governor when Maine's tribes launched online sports betting in November 2023. The Wabanaki Nations hold her in high esteem for supporting their economic initiatives. After news of the lawsuit broke, Chief Nicholas defended the Governor's position while criticizing Oxford Casino's owners: "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." ### Economic Concerns and Regulatory Warnings The lawsuit references a study from the National Association Against iGaming (NAAiG) that paints a grim economic picture. According to their estimates, exclusive iGaming could cost Maine: - Hundreds of jobs - $22 million in lost labor funds - $60 million in overall economic loss Interestingly, the MGCU itself warned Governor Mills about these potential impacts. They urged her to consider how exclusive iGaming would affect Oxford and Hollywood Casino—Maine's only two commercial casinos. ### What This Means for Maine's Gambling Future This legal challenge creates uncertainty right as Maine's iGaming market was supposed to launch. Oxford and Hollywood Casino represent the state's sole commercial casino presence. Their exclusion from online gambling creates a two-tiered system that's now being tested in court. The case raises fundamental questions about how states balance tribal sovereignty with commercial business interests. It also highlights the tension between creating economic opportunities for historically marginalized communities and maintaining what businesses see as a level playing field. As one industry observer noted, "This isn't just about gambling dollars—it's about who gets to participate in Maine's economic future and on what terms." The outcome could influence how other states approach tribal gaming exclusivity in the digital age. For now, everyone's watching the courts. The decision could either validate Maine's approach to tribal economic development or force a complete rewrite of how iGaming gets distributed in the Pine Tree State.