Vacationland Goes Digital: Online Casinos Legalized in Maine

After years of attempts at passing legislation, Maine lawmakers have approved the legalization of online casinos, becoming the eighth state to do so. Starting from April 15th, the state’s four tribes will be able to form partnerships and launch online casinos. Check out our article to learn more details on this decision.

The History of Maine’s Gambling Legislation

Maine is one of the most liberal states when it comes to gambling, with lotteries being held all the way back in the 19th century. Since then, the state has legalized most forms of gambling, including sports betting in 2022. However, online casino legislation was frequently shot down, with many believing it’s not a good idea to expand gambling.

“This is basically saying people can sit at home and play slot machines on their computer all day long and I just don’t think it’s the right thing to do.”

Jeff Timberlake, Republican Senator

Governor Janet Mills mulled over the issue and postponed her decision on the latest bill until 2026. Once the new year arrived, she had three days to veto or approve several bills, including LD 1164, which would allow the tribes to open online casinos. In a reversal of her prior apprehension, the Governor allowed this bill to pass, and it will take effect on April 15th.

The Bill’s Framework

LD 1164 is similar to the 2022 sports betting bill in that it gives the Maine tribes exclusivity for online casinos. The four Wabanaki tribes will be able to partner with operators to offer online casino products, including poker, blackjack, and slots. Governor Mills is hopeful for this bill, as she believes it can help the state earn some additional revenue:

“It has always been my strong desire to work with tribal leaders to improve the lives and livelihoods of the Wabanaki Nations, and it is my hope that this new revenue will do just that.”

Governor Janet Mills

According to the bill, licenses would cost $50,000 annually, and all iGaming revenue would have an 18% tax rate. That is slightly higher than the 10% rate for sports betting. It’s also higher than the bill’s initial proposal of 16%, but the state projects it could earn $100 million in tax revenue over the first decade. This revenue can then be used to fund various programs, including those aimed at preventing gambling addiction.

The Opposition

Not everyone approves of this decision, such as the state’s two retail casinos. Oxford Casino Hotel and Hollywood Casino Hotel & Raceway are excluded from the bill, giving the tribes a monopoly over online casinos. The Maine Gambling Control Board’s chairman, Steven Silver, has also expressed disapproval of the bill, claiming it could reduce land-based casino revenue.

“Granting the tribes a monopoly and cutting out the casinos, when we’ve seen from other states that legalising iGaming cuts into casino revenue, that is going to have adverse tax consequences.”

Steven Silver, MGCB chair

Meanwhile, companies like Churchill Downs, which owns Oxford Casino Hotel, launched the National Association Against iGaming to oppose the bill. They have threatened to start a “people’s veto”, which may allow them to overturn the decision if enough people support the veto. According to one of the Association’s polls, 64% of residents are against iGaming.

Future of iGaming in the US

While there is time before the law comes into effect, this is a good sign for the future of online casinos in the US. Last year’s crackdown on sweepstake casinos, which also led to a Tennessee ban on them. However, as states continue to seek new sources of revenue, online casinos may become increasingly appealing, according to some consultants.

“The fiscal arguments are more apparent and maybe even more important given the state budget struggles that are expected to emerge over the next year.”

John Pappas, industry consultant

Virginia is another state with interesting developments, as its lawmakers are discussing the creation of a gambling commission and the legalization of online gambling. The state’s industry is expanding fast and will require better regulation. Meanwhile, Indiana lawmakers are open to legalizing online casinos, despite banning online sweepstakes.

Conclusion

Maine’s new law hasn’t taken effect yet, but the lawmakers who approved the bill show promise. Despite the opposition, online casino legislation has been pushed for years, and it could bring significant revenue. It would also help Indian tribes, who have been excluded from operating casinos and could only have sportsbooks.