One of Maine's two major commercial casinos, Oxford Casino, has filed a lawsuit in federal court to prevent the state's new online gambling law from taking effect. The lawsuit was filed by Oxford Casino's parent company, Churchill Downs Inc., in the Maine District Federal Court on January 23, 2026, targeting the new bill numbered LD 1164 — which grants exclusive online casino operation rights within the state to the four federally recognized Wabanaki tribes, accusing it of discriminating against non-tribal businesses and violating the U.S. and Maine constitutions. Related U.S. gambling industry legal disputes and compliance references can be found on the PASA website.
Lawsuit Core: Accusation of "Racial Monopoly" Questions Constitutionality
The lawsuit by Oxford Casino focuses on the exclusivity and fairness of the bill, with a clear core demand:
Qualitative Dispute: Claims that LD 1164 constitutes a "race-based monopoly," allowing only the Houlton Maliseet, Mi'kmaq, Passamaquoddy, and Penobscot tribes, the four major Wabanaki tribes, to operate online casinos, directly excluding out-of-state and non-tribal businesses;
Constitutional Claim: Believes the bill violates the Equal Protection Clause of the U.S. Constitution and the Maine Constitution, undermining a fair competitive environment and depriving non-tribal businesses of economic opportunities;
Core Demand: Requests the court to issue an injunction to prevent the bill from taking effect and seeks a fair opportunity to compete for online gambling licenses, while the current bill only allows tribal-owned enterprises to apply for licenses.
Potential Impact: Physical Casinos Face Revenue Decline and Job Losses
Oxford Casino warns that the new bill, if implemented, will bring significant impacts to itself and the Maine economy:
Revenue Decline Warning: Citing research by The Innovation Group, online gambling launch typically results in a 16% decline in physical casino revenues;
Economic Loss Estimate: This decline could lead to the loss of about 378 jobs, a decrease in labor income of $22 million, and a $60 million drop in Maine's economic output;
Corporate Risk: Oxford Casino currently employs 364 people and contributed over $40 million in taxes to the state government in 2025, claiming the bill poses a severe threat to its financial stability.
Support and Opposition: Tribal Rights vs. Fair Competition
The introduction of the new bill has sparked opposition between two major camps, involving long-term interest struggles:
Tribal Side: Historic Breakthrough Compensates for Market Exclusion
Past Basis: In 2023, the Wabanaki tribes had already obtained exclusive rights to operate sports betting within the state, generating $66 million in revenue that year;
Rights Demand: Tribal leaders claim that the bill is an important step in correcting historical exclusions from the state's gambling market, providing critical support for tribal community development.
Opposition: Not Just Oxford Casino, Industry Organizations Join the Resistance
Oxford Casino's Stance: As a long-time leader in Maine's gambling industry, it considers the bill to be "unconstitutionally favorable" to tribes, harming the legitimate rights of non-tribal businesses;
Industry Organization Action: The National Association Against Internet Gambling (NAAiG) also opposes, preparing petition activities to seek a public referendum to prevent the bill from being implemented.
Future Direction: Legal Struggles Determine the Fate of Maine's Online Gambling
The outcome of this lawsuit will directly affect the future of Maine's online gambling market:
Two Possibilities: If the court supports the bill, Maine will join states like New Jersey, Pennsylvania, and Michigan that have opened online casinos; if the lawsuit is successful, the bill may be overturned, and the launch of online gambling in the state could be delayed;
Uncertainty: In addition to federal court proceedings, the preparation of a public referendum also complicates the situation, and the bill may face multiple legal challenges before it can finally be implemented.
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This article is from "PASA-Global iGaming Leaders" gambling news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
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PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
