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In Maine, a legal battle over online casino gaming is heating up, and it could become one of the most significant iGaming cases in the U.S. Churchill Downs Incorporated is suing the state in federal court over its new iGaming law. The company, which owns Oxford Casino, says the law favors tribal-only systems over long-standing in-state operators.
The case comes just weeks after Maine became the eighth state to legalize online casino gaming, ending a two-year dry spell of new iGaming markets nationwide.
Tribal-only online gambling law sparks debate
Maine’s iGaming framework is simple but controversial. Only the state’s four federally recognized tribes — the Houlton Band of Maliseet Indians, the Mi’kmaq Nation, the Passamaquoddy Tribe, and the Penobscot Nation — are permitted to offer online casino gaming.
The law took effect Jan. 11 after Gov. Janet Mills declined to veto the bill. For the tribes, it represents a major economic opportunity and a long-sought expansion of gaming rights. For land-based operators like Oxford Casino, it represents a closed door.
Oxford Casino says it would gladly apply for an iGaming license, but state law bars non-tribal operators from doing so.
Oxford Casino calls Maine iGaming law unfair
The lawsuit, filed in U.S. District Court for the District of Maine, contends the law violates both the U.S. and Maine constitutions. The complaint argues that the law breaches equal protection guarantees and unfairly discriminates against businesses that are not federally recognized tribes, citing the Commerce Clause.
Oxford Casino’s filing describes the law as a “race-based preference” that harms Maine businesses that have already invested heavily in the state. Oxford employs 364 people in Maine and paid more than $40 million in taxes there last year. The company cites these figures to underscore the size and impact of its business.
The lawsuit asks the court to declare the law unconstitutional and to bar the state from enforcing it.
Economic impact of Maine’s online casino law
The complaint emphasizes economic forecasts alongside constitutional arguments. It cites industry research suggesting that Maine’s iGaming rollout could cost the state roughly 378 jobs, $22 million in lost wages, and about $60 million in lost economic value.
Oxford also highlights broader industry trends, noting that land-based casinos typically lose around 16% of revenue when online casinos enter the market. The casino’s grievance is not with iGaming itself but with being excluded from a market that could significantly affect its business.
Other groups push back against Maine law
Churchill Downs and Oxford Casino are not alone in pushing back. The National Association Against iGaming has announced plans to pursue a public referendum to block the law entirely. That effort could force Maine voters to weigh in directly, adding another layer of uncertainty to the state’s iGaming rollout.
