Could Maine Become the Eighth iGaming State? Online Casino Legislation Resurrected

Lawmakers in Maine have reignited discussions around iGaming, surprising many in the industry. A measure to approve online casino games, shelved earlier, has gained traction in the legislative process. Here’s what you need to know about the ongoing developments in Maine’s online casino legislation.

Key Takeaways

Legislation to authorise iGaming is back in Maine.
The bill would only allow the state’s tribes to conduct online casinos.
The prospects for the iGaming bill passing are uncertain at best.

Recently, the Veterans and Legal Affairs Committee voted in favour of a bill to allow online casino games, which had previously been set aside. This has prompted fresh interest from various stakeholders.

Image: Portland Head Light, Maine’s oldest lighthouse. Lawmakers are reconsidering iGaming amidst rising revenue opportunities.

As Legislative Document 1164 moves forward, it now proceeds to the full House and Senate for consideration. The committee’s action came after Governor Janet Mills called a special session to discuss potential new tax revenue sources.

Only seven states, including Connecticut, Delaware, and New Jersey, currently permit online casino operations. Notably, Maine’s population is much smaller at around 1.4 million residents, leading to limited expected tax benefits. Estimates suggest the state could reap only about $1.8 million in the 2025-26 fiscal year from online casinos, which is a mere fraction of the state’s $11.63 billion budget.

Sizing Up Maine’s iGaming Market

The fiscal projections indicate a modest revenue generation potential from iGaming, with a proposed 16% tax on gross revenue. The bill aims to grant exclusive iGaming rights to the Wabanaki Nations, Maine’s four federally recognized tribes, namely the Maliseet, Micmac, Passamaquoddy, and Penobscot. If successful, each tribe may partner with an online gaming operator, with names like FanDuel and DraftKings being potential candidates.

Three tribes already have the exclusive rights to online sports betting in the state. The tribes have partnered with Caesars Sportsbook, while the Passamaquoddy have associated with DraftKings.

Challenges Ahead

Despite the optimistic projection, the likelihood of the iGaming bill becoming law faces significant hurdles. Main opposition comes from existing land-based casino operators, namely Penn Entertainment and Churchill Downs, who argue that iGaming will divert revenue away from their venues, leading to significant job losses and reduced overall state tax revenue — possibly up to $67 million annually.

This opposition is further complicated by Governor Mills’ history of resistance to expanded gambling. Although she approved the 2022 bill granting tribes online sports betting rights, she previously vetoed measures allowing tribes to establish additional gambling businesses on their lands.

In summary, while Maine’s pathway to potentially becoming the eighth state to legalise online casinos is fraught with challenges, the ongoing legislative efforts signal a significant shift in local policy discussions surrounding gaming and state revenue generation. Whether the tribes can successfully navigate these political winds remains to be seen.