One of Maine’s two commercial casinos has asked a federal court to halt the rollout of online casino gambling, arguing that a new statute improperly grants exclusive control to tribal nations.
The Oxford Casino Hotel and its corporate owners filed suit in US District Court against the director of the state’s gambling control unit, seeking to block enforcement of LD 1164. The measure authorizes online casino gaming and limits participation to the Wabanaki Nations. Gov. Janet Mills allowed the bill to take effect without her signature earlier this month, a decision welcomed by tribal leaders and opposed by commercial casino operators.
Oxford contends the law establishes an unconstitutional monopoly that threatens its business. In its filing, the casino said Maine “blessed a race-based monopoly” by restricting iGaming licenses to the tribes. The complaint argues that online gambling would divert customers and revenue from existing casinos, which currently hold exclusive rights to in-person table games.
“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 lawsuit reads.
Economic impact and constitutional claims
The complaint alleges the statute violates equal protection provisions under both the U.S. and Maine constitutions. Oxford employs 364 workers and says iGaming would jeopardize those jobs. The filing cites research commissioned by the National Association Against iGaming projecting about 378 lost jobs in Maine, $22 million in reduced labor income, and $60 million in lost economic output.
Another study referenced in the suit found that brick-and-mortar casino revenue declined by 16% in states that legalized online casinos. Oxford also noted that it generated $40 million in tax revenue for Maine last year. Analysts estimate the online casino market could be worth about $200 million annually for the tribes.
Tribal history and competing views
The Wabanaki Nations gained exclusive sports betting rights in 2023, producing $66 million in profits last year, shared with platform operators. Tribal leaders describe the iGaming law as overdue access to a market long dominated by commercial casinos.
“Wabanaki Tribes have been closed out of this market until Governor Mills initially supported the Tribes in Sports Betting and now IGaming,” William Nicholas, chief of the Passamaquoddy Tribe at Motahkomikuk (Indian Township), said in a written statement. “For years out-of-state interests have been enriched in their monopoly and now are attacking Mainers who are here to support and keep Maine economics in Maine.”
Rep. Aaron Dana, who represents the Passamaquoddy Tribe, dismissed the casino’s claims. “I think it’s very hypocritical,” he said, arguing the law mirrors exclusive rights long held by Maine’s two casinos.
State officials declined to comment because of the pending litigation. The law takes effect 90 days after the current legislative session ends, no later than April 15. If upheld, Maine would join seven other states offering statewide online casino gaming.
Source:
“Oxford Casino sues to block tribal iGaming”, pressherald.com, January 27, 2026
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