Maine's legislature reconvened this Wednesday, meaning Governor Janet Mills has only three days left to decide whether to sign a bill that could make Maine the eighth state in the U.S. to have legal online casinos. Bill LD 1164 not only concerns the legalization of online casinos but also involves the exclusive operating rights of Native tribes and the interests of physical casinos within the state, with outcomes that will significantly impact the state's gambling industry landscape.
Bill Core: Tribal Exclusive Operation and 18% State Tax
The core of Bill LD 1164 is to grant the state's four Wabanaki tribes exclusive rights to offer online casino games (including blackjack, poker, and slot machines). In return, the state government will levy an 18% tax on these revenues. This is not the first time these tribes have ventured into online gambling; they have already partnered with DraftKings and Caesars Entertainment to launch online sports betting services in Maine in 2023.
The journey of this bill has been tumultuous. Before being passed in a special session last year, it was once shelved by the Senate. It was eventually sent to the "Special Appropriations Committee," where many bills perish, but LD 1164 became one of the 117 bills sent to the governor's desk.
Opposition: Concerns from Regulatory Bodies and Industry Organizations
Despite the bill reaching its final stage, opposition remains strong. Last month, the Maine Gambling Control Board (MGCB) unanimously voted to urge Governor Mills to veto the bill. The chairman, Steven Silver, warned in a letter to the governor that if the bill passes, it would negatively impact physical casinos:
Employment Impact: Could lead to the loss of up to 200 jobs.
Tax Concerns: Granting tribes a monopoly and excluding physical casinos, as other states' experiences have shown that online casinos can divert revenue from physical casinos, which would adversely affect state tax revenues.
Addiction Risks: The committee also warned that the convenience of online casinos could lead to a significant increase in gambling addiction issues.
Additionally, a recent poll released by the National Association Against iGaming (NAAiG), supported by physical casino operators like Churchill Downs and Cordish Companies, shows that 64% of Maine residents oppose the legalization of online casinos. The organization emphasizes that governors and legislatures in other states are listening to voters and choosing not to advance this "highly addictive" form of gambling.
Governor's Decision and Political Balancing
The pressure is now entirely on Governor Janet Mills. After the legislature reconvenes, she will have three days to decide whether to veto these bills. Looking back, Mills vetoed a sports betting bill in 2020 but ultimately signed it into law in 2022, indicating her decisions are based on multiple considerations.
Her decision will send a critical signal about Maine's stance on digital gambling legislation by 2026. On one hand, supporting the bill could open new tax revenues for the state government and fulfill economic development commitments to the Native tribes; on the other hand, she must consider the professional opinions of regulatory bodies, potential employment issues, and public sentiment. Finding a balance between economic promotion, maintaining fair competition, and assuming social responsibility is a significant test of her political wisdom. For those interested in the trends of gambling regulation across the U.S., more in-depth analysis can be found on the PASA official website.
Future Outlook: Chain Reactions Regardless of the Outcome
If Governor Mills does not veto, LD 1164 will automatically take effect without her signature, officially adding Maine to the list of states with legalized online casinos, led by the tribes. If she exercises her veto power, the legislature may still overturn the veto with a two-thirds majority, but the process will be more complicated.
Regardless of the outcome, the debate over the exclusive rights to operate online casinos has clearly revealed the classic contradictions faced by Maine and more regions in the U.S. in the expansion and regulation of the gambling industry: the multidimensional game between economic growth, community benefits, fair competition, and social responsibility. The outcome of this "three-day countdown" is worth our continued attention.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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PASA official website: https://www.pasa.news
