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.

The post Maine House Votes To Allow Online Casinos Through Wabanaki Nations appeared first on CasinoBeats.

Legislative Document 1164, “An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming,” stalled in the Joint Veterans and Legal Affairs Committee on Monday.

The proposed legislation would have given the tribes exclusive licenses to run online platforms offering casino-style games like poker, blackjack, and roulette. Revenues generated through these services would have been subjected to a 16% tax to help state-funded services such as addiction recovery and veterans’ programs.

The measure followed the 2022 legalization of online sports betting, which the Wabanaki already operates. Three of the tribes partner with Caesars Sportsbook, and the other is with DraftKings Sportsbook. 

Proponents Push Financial Benefits

Unsurprisingly, LD 1164 received support from Caesars and DraftKings but faced stiff opposition from Churchill Downs, FanDuel, PENN Entertainment, Maine Gambling Control Board Chair Steve Silver, and others.

Tribal leaders throughout Maine submitted written testimony in favor of the bill, highlighting its economic benefits and the need for more regulatory oversight.

At a committee hearing earlier this month, Pos Basset, Chief of the Passamaquoddy Tribe at Sipayik, testified that the bill would “generate revenues that will help us save enough money to do things like move our wastewater treatment plant and survive what’s to come from rising sea levels.”

He added: “(Online gaming) is already happening on peoples’ phones. Why not use the existing activity to benefit state and trivial governments?”

Rep. Aaron Dana of the Passamaquoddy Tribe stated: “For the Passamaquoddy Tribe and all the other Wabanaki communities, this is about fairness and the ability to participate in the industry that already benefits others across the country.”

Opponents, meanwhile, stressed that the bill would negatively impact jobs in the state.

Said Silver: “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.”

Questions Persist in Maine Around Illegal Gaming

Rep. Anne Graham raised questions before the committee Monday about the prevalence of unregulated gaming in Maine.

“I wondered if we know what’s happening out there?” Graham asked. “My impression was that this is happening and it’s illegal, other states have chosen to make it legal, so I don’t know if we have any statistics or any awareness of how much of that is going on?”

As such, there have been calls for more information.

“It should be noted that there are probably lots of things that are happening illegally,” she added, “and that is not always a reason to authorize the activity. That was pointed out by people who did submit follow-up information and at the public hearing.”

Online gaming is currently legal in only the following states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. 

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