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Churchill Downs property Oxford Casino has filed a lawsuit seeking to block Maine’s upcoming iGaming bill, which will grant exclusive rights to the Wabanaki Nations to operate online gambling in the state.
The lawsuit alleges the new law is unconstitutional and establishes “race-based” monopoly. The suit names the head of the Maine Gambling Control Unit and seeks an injunction halting enforcement of the new iGaming law.
The bill in question, LD 1164, became law earlier this month. Maine Gov. Janet Mills surprised many by declining to veto it. It gives exclusive rights to four federally recognized tribes in Maine: the Penobscot Nation, the Passamaquoddy Tribe, the Mi’kmaq Nation, and the Houlton Band of Maliseet Indians.
Maine is set to become the eighth state to allow legal online gambling.
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Oxford Claims iGaming Bill Will Deal ‘Gut-Wrenching Blow’
Oxford Casino employs 364 people in Maine, and the lawsuit argues it will lose significant revenue under the new iGaming law.
The suit references a study by the National Association Against iGaming that estimates Maine could indirectly lose $60 million in the economy and hundreds of jobs due to the introduction of online gambling.
The plaintiffs argue that by giving exclusive access to the Wabanaki Nations, the market excludes everyone else. The lawsuit states the following:
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 casino is accusing the state of violating various Equal Protection Clauses of Maine and the United States.
The new bill allows each of the Wabanaki Tribes to partner with a single online gaming company to offer online gambling in Maine.
Unsurprisingly, the legal challenge has been met with harsh criticism from the Wabanaki Nations involved.
Maine Tribes Fire Back, Call Lawsuit ‘Hypocritical’
The lawsuit didn’t generate any sympathy from the Wabanaki Tribes. They spent many years locked out of gambling in the state, a sharp contrast to other states.
It was particularly galling to tribe officials when, after years of bids for tribal casinos getting rejected, the state approved construction of the retail Oxford Casino in 2010.
Lawmakers finally relented in 2023 and gave the Wabanaki exclusive rights to offer online sports betting in Maine.
Rep. Aaron Dana, who represents the Passamaquoddy Tribe, didn’t mince words when speaking to The Portland Press Herald.
“I think it’s very hypocritical,” he said.
According to the lawsuit, Oxford Casino isn’t against online gambling altogether. It just wants state legislators to open the market up to everyone who wants to compete.
Gambling giant Churchill Downs Incorporated purchased Oxford Casinos in 2013 for approximately $160 million.
Churchill Downs has had a fraught relationship with online gambling. It previously operated BetAmerica and TwinSpires. In 2022, it exited the online sports and casino market to focus on its core business of horse racing.
Since exiting the online gambling market, Churchill Downs has increasingly advocated against online gambling. It is a member of the National Association Against iGaming (NAAiG).
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