Maine Considers Online Casino Bill with Tribal Exclusivity

Lawmakers in Maine have been debating a bill that seeks to legalize online casino gaming with tribal exclusivity. 

LD 1164 is titled “An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming.” 

The bill’s language would authorize each federally recognized Indian nation, tribe, or band (together known as the Wabanaki Nations) to operate Internet gaming. It explicitly states: “Only a federally recognized Indian nation, tribe or band in this State is eligible to obtain a license and operate Internet gaming.” 

The licensing structure would follow the law governing online sports wagering, which the Wabanaki Nations already operates. 

Currently, Caesars Entertainment works with three of the four tribes and DraftKings the other. There was a notable omission of heavyweight industry FanDuel and other brands such as BetMGM. 

Tribes and Operators Present Arguments in Favor of LD 1164

The Maine legislature has received written testimony from multiple stakeholders. Unsurprisingly, DraftKings and Caesars have supported the proposed legislation, whereas FanDuel, PENN, and Churchill Downs have opposed it. Several public health arguments also oppose the legalization of online gaming in the state.

Rep. Ambureen Rana, a bill sponsor, emphasized that legalization would “ensure that internet gaming revenue is kept in Maine, to benefit Maine communities.” 

Testimonies from tribal leaders stated that currently, Maine citizens already gamble online, but illegally, without consumer protection, and as a result, there’s missed economic opportunity. Chief Pos Bassett of the Passamaquoddy Tribe at Sipayik testified: “LD 1664 will 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 continued: “[Online gaming] is already happening on peoples’ phones. Why not use the existing activity to benefit state and trivial governments?” 

Chief William Nicholas Sr. of the Passamaquoddy Tribe at Motahkomikuk echoed this positive sentiment. He said the bill “provides consumer protection and creates new governmental revenue without raising taxes on citizens.” 

Matt Scalf, Government Affairs Manager at DraftKings, voiced the operator’s support, stating: “Building on that, we are proud to be testifying here today in support of the Passamaquoddy Tribe and online gaming that supports economic independence for Maine’s tribal nations.” 

“Regulating online gaming provides new revenue… while setting consumer protections and regulating an illegal activity that is flourishing across the country,” added Scalf. 

Caesars Entertainment was also vocal in its support of the proposed legislation. The company currently partners with the Houlton Band of Maliseet Indians, the Mi’kmaq Nation, and the Penobscot Nation to offer online sports wagering. 

Joseph Tyrell, Caesars’ Vice President for Government Relations commented: “We support the iGaming tax rate of 16%… which we estimate could generate about $35 million in tax revenue to the state of Maine in the first year.” 

Oxford and Hollywood Casinos Raise Job Loss Concerns

However, there is vociferous opposition from all angles. Oxford Casino & Hotel and Hollywood Casino both voiced concerns about the impact on commercial casinos should they not be included in any legislation.

Matt Gallagher, General Manager of Oxford Casino & Hotel, said: “This bill would create an internet gaming monopoly for the Wabanaki Nations, with little economic benefit to Maine.” 

Chris Jackson, on behalf of Hollywood Casino & Raceway, added: “This would take money out of the State while creating minimal jobs, and worse, likely costing jobs by taking customers away from our two commercial casinos.” 

John Williams echoed this sentiment from the Oxford Hills Chamber of Commerce, who stated, “LD 1164 would threaten jobs in Oxford and Penobscot County while creating no new jobs in Maine.” 

Steve Silver, Chair of the Maine Gambling Control Board and often a supporter of gambling legalization, stated he could not support the bill as it is written. “Oxford and Hollywood Casinos employ nearly 1,0000 Mainers. Legalizing iGaming without permitting them to participate will lead to job cuts,” he said. 

Michael Venture, who works in State Government Relations for FanDuel, claims the proposed legislation and creation of a monopoly could drive further black market activity: “We are concerned that it will not create the healthy, regulated market that we have seen in many other states.” 

“The lack of legitimate choice for the consumer can encourage individuals to seek alternative methods outside of the regulated landscape,” he continued. 

Public Health Advocates Sound Alarm on Addiction Risks

A legislative debate around broadening gambling legalization wouldn’t be complete without public health advocates lambasting legalized online gaming. Nicholas Adolphsen, Executive Director of the Christian Civic League of Maine, testifies: “LD 1164 will not create opportunity—it will create orphans. It will rob children of fathers… and embolden an industry that profits off addiction.”

Dr Patty Hymanson, a physician, gave testimony, suggesting that bringing another addictive vice into the legal mainstream will put further strain on Maine’s behavioral health workforce. She emphasized: “Please be sure to find a funding source to identify and treat increased gambling addiction. In Maine, we do not have an adequate workforce to treat behavioral health problems as it is. Before adding Mainers and their families who will be hurt by this addiction, make sure there is a behavioral health system that can help to catch them.” 

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 Lawmakers in Maine have been debating a bill that seeks to legalize online casino gaming with tribal exclusivity.  LD 1164 is titled “An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming.”  The bill’s language would authorize each federally recognized Indian nation, tribe, or band (together known as the Wabanaki Nations) to
The post Maine Considers Online Casino Bill with Tribal Exclusivity appeared first on CasinoBeats.