After recently legalizing online gaming, one of the land-based casinos is filing suit over it.
The Churchill Downs-owned Oxford Casino Hotel is taking the state to court regarding the legalization. The casino argues that giving the Wabanaki Nations an exclusive right to run the industry amounts to a “race-based monopoly.”
The company sued the Maine Gambling Control Unit in federal court on Friday to prevent the law from going into effect. Churchill Downs argued the property could lose millions of dollars because of the new law.
“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 lawsuit said.
Lawsuit Points To Loss Jobs from iGaming
In the lawsuit, Churchill claims the law violates the Equal Protection Clauses of the US and Maine constitutions. Both prohibit discrimination based on race
The lawsuit also cites a recent poll by the National Association Against iGaming that said online casinos could indirectly cost the state 378 lost jobs, $22 million in lost labor income, and $60 million in lost value added to the economy.
The state granted the Wabanaki Nations an exclusive right to operate sports betting in the state in 2023. The industry brought in profits of $66 million in 2023.
The Wabanaki includes four federally-recognized tribal groups – the Penobscot Nation, Passamaquoddy Tribe, Houlton Band of Maliseet Indians, and Mi’kmaq Nation. The Passamaquoddy and Penobscot had hoped to build a casino for decades, but that was stopped by state leaders.
Tribes: No Gaming Monopoly
Tribal leaders argue that iGaming and sports betting are actually ways to break up existing monopolies by the state’s two commercial casinos.
“Wabanaki Tribes have been closed out of this market until Gov. (Janet) Mills initially supported the Tribes in Sports Betting and now iGaming,” Passamaquoddy Tribe Chief William Nicholas told the Portland Press Herald. “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.”
The bill legalizing online gaming was passed in June. Then, it sat on the governor’s desk as Mills declined to either sign it into law or veto it before the legislative session ended. The bill ultimately passed another deadline as the current legislative session began and became law without her signature.
