The four Wabanaki tribes in Maine have filed a motion in response to the Oxford Casino Hotel’s lawsuit seeking to block the tribes from launching online casino platforms.
Maine passed legislation earlier this year to legalize online casinos through the tribes. The Oxford Casino responded by suing the state, alleging the new law was an illegal “race-based monopoly.”
All four Wabanaki tribes — the Houlton Band of Maliseet Indians, the Mi’kmaq Nation, the Passamaquoddy Tribe, and the Penobscot Nation — filed a joint motion to intervene in the lawsuit last week, and a judge granted the request.
Is Tribal Exclusivity Racial Discrimination?
“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 said in its lawsuit filed in January.
The casino claims that launching online casinos could indirectly cost Maine 378 lost jobs, $22 million in lost labor income, and $60 million in lost value added throughout the economy.
The tribes reject the claim that they are favored on the basis of race, but insist that the exclusive gaming rights are due to their sovereign political status.
“Adopting Plaintiffs’ equal protection theories could threaten the validity of countless laws that classify based on the unique sovereign status of federally recognized tribes,” attorneys for the tribes have responded.
The tribes already have exclusive rights to sports betting, which launched in 2023. This has been challenged by the introduction of sports prediction markets, which tribes have vehemently opposed.
Online Casino Funds Will Empower Tribes
Maine Gov. Janet Mills initially opposed legalizing online casinos, but eventually signed off on the legislation to empower the tribes.
“It has always been my strong desire to work with Tribal leaders to improve the lives and livelihoods of the Wabanaki Nations, and it is my hope that this new revenue will do just that,” said Mills.
Analysts have predicted that iGaming could generate $100 to $200 million in annual revenue. Of this, $20 to $30 million could go to commercial operators DraftKings and Caesars, who currently offer online sports betting through tribal partnerships.
Maine Will See Little Benefit, Claims Oxford Casino
Maine’s official tax projections expect around $1.8 million in the first year, rising to around $3.6 million in the next.
Oxford Casino claims the tax revenue does not justify the launch of the market. It also claims the people of Maine oppose iGaming, citing a poll in which 65% of respondents said they do not want online casinos.
“There is no compelling government interest in privileging the economic interests of the Wabanaki Nations over the interests of all other persons and businesses within the state,” said the complaint.
Lenny Powell, an attorney for the Native American Rights Fund representing the Wabanaki Nations, said data shows that “tribal and nontribal communities alike are stronger when Tribal nations are empowered in their pursuit of self-determination.”
The lawsuit seeks a declaration that the new law violates Maine’s prohibition on special legislation and an injunction enjoining its enactment. If allowed to proceed, it is likely the first platforms will go live next year.
The post Wabanaki Tribes Fight for Online Casino Rights Amid Legal Challenge in Maine appeared first on CasinoBeats.
The four Wabanaki tribes in Maine have filed a motion in response to the Oxford Casino Hotel’s lawsuit seeking to block the tribes from launching online casino platforms. Maine passed legislation earlier this year to legalize online casinos through the tribes. The Oxford Casino responded by suing the state, alleging the new law was an
The post Wabanaki Tribes Fight for Online Casino Rights Amid Legal Challenge in Maine appeared first on CasinoBeats.