A new round of debate over regulation in Maine
On 20 March, the Maine House of Representatives received a bill to legalize online casinos. This bill could create new opportunities for native tribes and squeeze out illegal operators. House Bill 1164, titled ‘An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gambling,’ provides for and describes the licensing of online casino operators similar to online bookmakers.
The Chief of the Wabanaki Nation and representatives from all four of its tribes, along with local operators, strongly support the bill. At the same time, critics have pointed to the need for refinement. The bill will be considered at the next work session of Maine legislators.
Political сontext
As we wrote previously, Maine legalised sports betting in May 2022, granting exclusive rights to the state’s four tribes that make up the Wabanaki Nation. In an effort to improve relations with the poorly federally recognised tribes, Governor Janet Mills offered them monopoly rights to online betting. According to last year’s report, the legalised sector generates about $50 million in monthly revenue.
Maine officials have already tried to legalise online casinos. As we wrote earlier, in April 2024, the Maine House of Representatives rejected a bill that proposed to legalise online casinos for the region’s indigenous tribes. Despite this, the bill was sent to the Senate, which didn’t just reject it but voted to postpone debate on the issue.
The tribes are in favour of legalisation
Wabanaki Nation Chief Pos Bassett argues that legalising internet gambling in Maine would allow taxes and revenue from online casino operators to be kept within the state. Bassett also draws attention to online gambling, which is already widely practiced by the state’s population outside of legal land-based casinos: ‘It’s already happening on people’s phones. Why not leverage existing activity for the benefit of state and tribal government?’
Arguments in support of the update
Joseph Tyrell, regional vice president of government relations for Caesars Entertainment, noted joint support for the bill with the Wabanaki tribe. They advocate for creating economic opportunities for Maine’s federally recognised tribal nations through a strong state regulatory framework administered by the Division of Gaming Control. He believes that a regulated online gambling market would provide new revenue for Maine and the Wabanaki tribes.
Matt Scalf, government relations manager at DraftKings, presented another argument in favour of the bill. He says that regulation will ensure that consumers are protected from illegal activities that are gaining momentum in the US.
Scalf also recalled the positive experience of states that choose their tax rate wisely, such as Connecticut. With a tax for online operators of 18 per cent, the state authorities have seen a positive trend in revenue from the legal market. Thus, they have an additional opportunity to fund new legislative projects.
Arguments of opponents
The bill was criticised by representatives of large operators not represented in the market. Thus, the argument presented by the operator FanDuel concerns the content of the bill. Speaking on behalf of FanDuel, Fanatics and BetMGM, senior manager Michael Ventre expressed doubts about the bill’s ability to create a healthy market along the lines of other states. Ventre draws an analogy to the regulation of online sports betting in Maine, which limits the market to only two operators instead of a possible four.
Ventre recalled that since the legalisation of online sports betting, three of the four Wabanaki tribes have partnered with Caesar’s and the fourth with DraftKings. A situation in which one operator holds about 90 per cent of the market could encourage players to seek diversity outside the legal market, Ventre said.
The similarity of House Bill 1164 to existing sports betting rules is also a concern for regulators. Actively supporting the legalisation of iGaming, the Chairman of the Maine Gaming Control Board, Steve Silver, in his official statement, called the proposed 16% tax rate too favourable for operators. He also opposed creating competition for local land-based casinos, such as Oxford and Hollywood Casinos, which faithfully pay taxes and offer jobs.
Religious and health associations in the state have traditionally opposed the bill to legalise online casinos in Maine, recalling the detrimental effects of risky gambling behaviour.
This article was first published in Russian on 3 April 2025.
