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Oxford Casino Hotel and its parent company have taken their fight to federal court, arguing that Maine’s new online gambling law unfairly hands exclusive rights to the Wabanaki Nations.
The lawsuit targets the state’s gambling control director and seeks to block the rollout of LD 1164, the measure that legalized iGaming earlier this month. Governor Janet Mills let the bill become law without her signature, a decision that was celebrated by tribal leaders who had long sought entry into the gambling industry.
The law positions Maine to join seven other states with legal online casinos, opening a new stream of revenue while giving the tribes sole authority to operate digital gaming platforms.
Oxford Casino claims this arrangement creates a monopoly based on race and could strip the casino of millions in potential earnings.
“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, which was filed Friday, reads.
The case now sits before Maine’s US District Court, where the company argues the state crossed legal boundaries by granting exclusive control of online casino gaming to the tribes.
$200-million-per-year industry at stake for the tribes
Analysts say the new law could open the door to a 200 million annual industry for Maine’s tribes.
The Wabanaki Nations already secured a major win in 2023 when they were granted exclusive rights to run sports betting. That venture produced $66 million in profits last year, shared between the tribes and their platform partners.
Governor Mills’ recent decision to let the iGaming bill take effect without her signature was met with celebration from all five Wabanaki chiefs. For tribal leaders, the move represents not only new revenue but also a chance to break the dominance of Maine’s two commercial casinos over table games.
Passamaquoddy and Penobscot leaders, who have long fought for the right to build their own casino, argue that the exclusive right to operate online gaming is not a monopoly created by the state.
Instead, they see it as a correction to the existing monopoly held by Oxford and Hollywood casinos, giving tribes long‑denied access to the gambling market.
“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.”
