Wabanaki Tribes Bid for Online Casino Rights in Maine Lawsuit

(AsiaGameHub) –   The four Wabanaki tribes in Maine have submitted a legal motion in response to a lawsuit by Oxford Casino Hotel, which aims to prevent the tribes from debuting online casino platforms.

Following Maine’s legalization of tribal-led online casinos earlier this year, Oxford Casino filed a suit against the state, characterizing the legislation as an unlawful “race-based monopoly.”

A judge has approved a joint request to intervene in the case filed last week by all four Wabanaki tribes: the Houlton Band of Maliseet Indians, the Mi’kmaq Nation, the Passamaquoddy Tribe, and the Penobscot Nation.

Does Tribal Exclusivity Constitute Racial Discrimination?

In its January filing, the casino argued that “advancing iGaming through race-based preferences is a significant blow to Maine companies like Oxford Casino,” noting their substantial investments in the state.

The casino further asserts that the introduction of online casinos could result in the loss of 378 jobs, $22 million in labor earnings, and $60 million in total economic value for Maine.

Rejecting the allegation of racial favoritism, the tribes maintain that their exclusive gaming privileges are rooted in their status as sovereign political entities.

Legal counsel for the tribes stated that “accepting the Plaintiffs’ equal protection arguments could jeopardize numerous laws that are based on the distinct sovereign status of federally recognized tribes.”

The tribes currently hold exclusive rights to sports wagering, which debuted in 2023. However, this sector has faced opposition from the tribes regarding the emergence of sports prediction markets.

Tribal Empowerment Through Online Casino Revenue

Although Maine Governor Janet Mills was initially hesitant to legalize online casinos, she ultimately approved the measure to support tribal development.

Mills remarked, “I have consistently aimed to collaborate with Tribal leaders to enhance the prosperity of the Wabanaki Nations, and I hope this new funding source achieves that goal.”

Market experts estimate that iGaming could produce $100 million to $200 million in yearly revenue. From this, commercial partners DraftKings and Caesars, who manage tribal sports betting, could see $20 million to $30 million.

Oxford Casino Argues Limited Benefits for Maine

State tax forecasts suggest roughly $1.8 million in revenue during the first year, increasing to approximately $3.6 million the following year.

Oxford Casino contends these tax figures do not justify the market’s expansion and points to a poll showing that 65% of Maine residents are against online casinos.

The complaint argues that there is no “compelling government interest” in prioritizing the financial welfare of the Wabanaki Nations over other state entities and citizens.

Lenny Powell, representing the Wabanaki Nations via the Native American Rights Fund, noted that evidence indicates “both tribal and nontribal communities benefit when Tribal nations are granted the power of self-determination.”

The legal challenge aims for a ruling that the law violates Maine’s rules against special legislation and seeks an injunction. If the law stands, the first sites could launch next year.