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(AsiaGameHub) – In January, Maine’s Wabanaki Nations in the U.S. received official authorization to “run online gambling operations to boost economic growth and investments in Tribal communities”—a move stemming from Governor Janet Mills’ approval of LD 1164 as law.
This legislation, titled “An Act to Create Economic Opportunity for the Wabanaki Nations,” granted the tribes sole rights to either operate online casino platforms or partner with others to do so. Predictably, the decision faced opposition, and Churchill Downs Incorporated filed a legal challenge against it.
Recently, a federal judge has permitted the Wabanaki Nations to join the ongoing lawsuit, which has the potential to alter the trajectory of online gaming in Maine.
Tribes Granted Status as Formal Defendants
This ruling enables the tribes to formally participate in the case as defendants, defending the law that gives them exclusive online gaming rights. The lawsuit was initiated earlier this year by the operator of Oxford Casino.
Churchill Downs argues that the law breaches equal protection standards outlined in both the U.S. Constitution and Maine’s constitution, asserting that giving the tribes exclusive online gaming rights unjustly privileges a group based on their identity.
Maine legislators had previously given the tribes exclusive control over online sports betting, further solidifying their standing in the state’s digital gaming sector.
“Gut-Wrenching Blow to Maine Businesses”
Commercial operators such as Churchill Downs have felt a notable impact. Its Oxford Casino, together with Hollywood Casino in Bangor, is barred from providing online gaming services—though both locations can continue to run in-person sports betting operations.
In its legal filing, Churchill Downs stated that the policy “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 company also contends that online gaming could lower revenue for brick-and-mortar casinos, citing several studies that indicate revenue drops following the launch of digital gambling platforms.
The tribes, on the other hand, have a contrasting perspective. Their legal team asserts that the lawsuit could jeopardize their long-standing work to enhance tribal self-governance and economic progress.
Lenny Powell, the tribes’ representative, described the case as “an unfortunate effort to undermine Tribal-state partnership.”
“It aims to weaken the legal foundation for productive government-to-government policy cooperation, even though decades of data demonstrate that both tribal and non-tribal communities thrive when Tribal nations are empowered to pursue self-determination,” he further stated.
Intricate Legal Framework
Maine’s legal structure adds particular complexity to the case. Unlike most other states, tribal gaming rights in Maine are constrained by the Maine Indian Claims Settlement Act, which places tribes under more direct state oversight and curtails some of their sovereign authority.
This difference may turn out to be critical as the case progresses. Whereas tribal gaming agreements in other states are frequently safeguarded by federal law, Maine’s system allows for more opportunities for legal disputes.
In the meantime, a survey conducted by Lake Research Partners on behalf of the National Association Against iGaming found that 64% of Maine voters oppose the legalization of iGaming, with 49% expressing strong opposition.
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