Churchill Downs' Oxford Casino filed a lawsuit against Maine regulators last week, contending that the state's new iCasino law, which grants exclusive online casino rights to four Wabanaki Nations, violates equal protection laws by creating a race-based monopoly. The lawsuit was submitted against the Maine Gambling Control Unit (MGCU) in the US District Court of the District of Maine.
According to Oxford Casino, the iCasino expansion could result in significant losses for the state’s two land-based casinos, estimating a loss of 378 jobs, $22 million in labor income, and an overall economic impact of $60 million. "All these harms are the direct consequence of a race-and-geography-based monopoly," the lawsuit states. It argues that if the Maine legislature has opted to allow iGaming in the state, then all entities should have an equitable chance to compete, irrespective of race or citizenship, as mandated by both the United States and Maine constitutions.
The lawsuit aims to have the newly enacted law deemed illegal. Earlier this month, Governor Janet Mills allowed the iCasino legalization to take effect, which offers exclusivity in online gambling to the four state tribes, who already have exclusive rights to online sports betting, partnering with Caesars and DraftKings.
Milton Champion, Executive Director of the MGCU and a defendant in the lawsuit, stated he had not yet received notice of the lawsuit as of Thursday afternoon and refrained from commenting on ongoing litigation.
Churchill Downs is part of the National Association Against iGaming (NAAiG), which opposes the expansion of online casinos nationwide. In its lawsuit, Churchill Downs expressed a preference for no online casinos in the state but insisted that if online gambling is to be regulated, it should be allowed to participate.
Both Oxford Casino and Penn Entertainment’s Hollywood Casino Hotel & Raceway Bangor opposed the tribal online gaming legislation during the legislative sessions, claiming that tribal exclusivity would unfairly harm commercial gambling entities and reduce their revenues. Despite their opposition, Mills allowed the law to be enacted, stating that it aimed to enhance the livelihoods of the Wabanaki Nations.
Following the law's passage, NAAiG expressed disappointment in Mills' decision, which they view as contrary to her earlier position against iCasino expansion. They also announced plans for a People's Veto initiative to contest the law through a public referendum. NAAiG did not provide additional comments this week.
"This decision represents a clear break from the governor's previously stated position and disregards overwhelming public opposition, expert warnings from her own regulators and a proven gaming framework that has delivered meaningful benefits to Maine communities and tribal nations for more than a decade," stated NAAiG. "It is important to be clear. Tribal nations already benefit from the existing casino tax structure. Opposition to this bill is not about excluding tribes or protecting narrow interests. It is about preserving a model that has worked for Maine workers, Maine communities and tribal governments alike. Dismissing these concerns as self-interested complaints ignores both the facts and the substantial public stake involved."
