Oxford Casino Sues Maine Over Tribal-Exclusive iGaming Law

The Oxford Casino Hotel filed a lawsuit against the state of Maine last week in U.S. District Court, seeking to block enforcement of LD 1164, a bill passed by state legislators last year and allowed to become law by Gov. Janet Mills without her signature on January 11. Officially titled “An Act to Create Economic Opportunity for the Wabanaki Nations,” the law permits each of the state’s four recognized tribes to offer online gaming.

In its 19-page complaint, Oxford Casino referred to LD 1164 as “The Monopoly Law” and argued that it violates both the state and U.S. constitutions. The lawsuit claims that, if allowed to stand, the Maine iGaming law will harm both the casino and the state, noting that Maine collected $40 million in taxes from Oxford Casino last year. The complaint also cites a study by The Innovation Group indicating that brick-and-mortar casinos in states with iGaming experienced a 16% drop in revenues. Based on those findings, the lawsuit alleges that the law could result in nearly 380 lost jobs, $22 million in lost wages, and a total economic impact of $60 million on the state’s economy. “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 lawsuit states.

Oxford Casino is one of only two commercial casinos operating in Maine, alongside Hollywood Casino in Bangor. Oxford is located roughly 35 miles north of Portland. Churchill Downs Inc., the Louisville-based company known for hosting the Kentucky Derby, owns Oxford Casino and is a named plaintiff in the lawsuit. Churchill Downs has grown into a significant regional gaming operator, with racetracks, casinos, and historical horse racing gaming centers across the Midwest, Mid-Atlantic, Northeast, and Southeast.

Last year, Churchill Downs and The Cordish Companies became founding partners of the National Association Against iGaming (NAAiG), which also includes other gaming operators and trade unions. NAAiG has actively opposed efforts to legalize online casinos, testifying in states such as Maryland where it helped prevent legislative measures by arguing that online gaming would cause job losses and reduce visits to land-based properties.

Proponents of iGaming dispute these claims, contending that online casino apps can actually serve as marketing tools to draw customers to brick-and-mortar resorts, boosting revenue from overnight stays, shows, and other amenities. While the Oxford Casino lawsuit clearly opposes Maine’s tribal-exclusive iGaming framework, it also argues that if iGaming is to be legalized, access should not be limited solely to the tribes. “Churchill Downs Incorporated would be interested in applying for an iGaming license in Maine, and would plan to apply for a license, but it is not eligible,” the complaint states, underscoring the company’s position that the law unfairly restricts competition in the state.

By fLEXI tEAM