Maine Representative Ambureen Rana’s LD 1164 has been resurrected and will now place the fate of iGaming in Governor Janet Mills’ hands. Whether she signs the bill remains unknown.
Online Casino Bill Back from the Dead
LD 1164 has had a long and peculiar journey through Maine’s legislative process, and just when the iGaming legislation known as “An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming” appeared headed for the trash bin of history after it failed to escape from the Joint Veterans and Legal Affairs Committee.
However, a last-minute reprieve by the Maine Legislature’s special session amended the bill from a 16% tax to an 18% tax, giving it the fuel to narrowly advance in the Senate. After several votes in the Veterans and Legal Affairs Committee, along with some unusual legal mechanics, the bill was labeled “passed to be engrossed as amended.”
Tribal Exclusivity and iGaming Control
This paved the way for tribal exclusivity of iGaming in the state, with the four federally recognized Wabanaki Nations tribes controlling the narrative. The four tribes also have gained exclusivity in the mobile gaming market, which was launched in November 2023, with three of the tribes partnering with DraftKings as a platform provider while Caesars is the operator for the fourth.
The four tribes’ exclusivity for Maine’s mobile sports and possibly iGaming industries emanates from the Maine Indian Claims Settlement Act of 1980, which only allows the tribes to operate bingo parlors and not the land-based casinos that have become so common in other states.
Economic Impact
Due to this economic disadvantage, the Wabanaki Nations have been granted preference and are in full support of the bill that experts estimate would bring $1.8 million to the state in its initial year, growing thereafter. Only seven states, including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut, and Rhode Island, have launched iGaming markets, with many legislatures hesitant to adopt it due to addictive gambling concerns.
Proponents of the legislation, like Representative Rana, cited this liability, saying, “Because the Wabanaki Nations have not enjoyed anywhere near the level of economic growth as that of other tribes in this country, they face an ongoing economic crisis.”
Pos Basset, Chief of the Passamaquoddy Tribe at Sipayik, testified on behalf of the bill, stating it 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.”
Governor’s Decision Awaits
Although the bill is inching towards the finish line, it is not a done deal. Governor Janet Mills has been cautious in her support for online gaming, and her office said they are monitoring the situation. Several groups oppose the legislation, including her colleagues at Maine’s Department of Health and Human Services, as well as the Maine Gambling Control Board Chair, Steve Silver.
Moreover, the land-based casino operators are fearful it will cannibalize their business which would lead to job losses and a reduction of the bottom line.
Chris Jackson, who spoke on behalf of Hollywood Casino, voiced his opposition, stating, “Passage of this bill, to be clear, would constitute the greatest single expansion of gaming in our state’s history without the vote of the people of Maine. It would threaten facilities in Bangor and Oxford.”
Governor Mills has 10 days to sign or veto the legislation.
