Maine Casino Files Federal Lawsuit To Block iGaming In The State
One of two brick-and-mortar casinos in Maine has filed a federal lawsuit seeking to block the state’s new online casino law, according to the report. Portland Press Reporter.
Oxford Casino Hotel filed the lawsuit in U.S. District Court late last week. LD1164, Law giving Wabanaki Nations exclusive rights to operate online casino gaming in Maine. The lawsuit names the director of the Maine Gambling Control Unit and asks the court to halt enforcement of the law.
Governor Janet Mills LD 1164 allowed to become law without his signature earlier this month. Once implemented, Maine will become the eighth state to offer legalized online casinos.
Breaking news — the news that few in the industry expected:
Maine Governor Janet Mills did NOT veto the iGaming bill, meaning Maine will become the 8th state to offer regulated real money online casino gaming.
— Casino Reports (@casino_reports) January 8, 2026
In its complaint, Oxford Casino argues that the state unlawfully granted tribes what it describes as a “race-based monopoly.”
“Promoting iGaming through race-based preferences deals a heartbreaking blow to Maine businesses like Oxford Casino that are heavily invested in the state and its people,” the lawsuit states. according to Press Reporter.
Isn’t it equal?
The casino claims the law violates the Equal Protection clauses of both the U.S. and Maine Constitutions, which prohibit discrimination based on race. Oxford Casino, which employs 364 people, argues it has been left out of a potentially lucrative new gambling market. Press Reporter reported.
Tribal leaders rejected the casino’s stance on the law, arguing that the lawsuit ignores the state’s long-standing exclusion of the Wabanaki Nations from casino gaming.
“The Wabanaki Tribes were excluded from this market until Governor Mills supported the Tribes, initially in sports betting and now in iGaming,” Chief William Nicholas of the Passamaquoddy Tribe in Motahkomikuk (Indian County) said in a written statement to the newspaper. “For years, out-of-state interests have enriched themselves with their own monopolies and are now attacking Mainers who are here to support and protect the Maine economy.”
Rep. Aaron Dana, who represents the Passamaquoddy Tribe in the Maine Legislature, said the lawsuit’s allegations are inconsistent with the state’s current gambling structure.
“I think that’s very hypocritical,” Dana said. Press Reporter.
Dana said the tribes’ exclusive rights to offer online casino games are no different than the exclusive rights Oxford Casino and Hollywood Casino already have to operate brick-and-mortar casinos in Maine. He added that the law was merely “race-based” because any law affecting the Wabanaki Nations must explicitly name the tribes.
The lawsuit follows a similar policy decision in 2023, when Maine granted the Wabanaki Nations exclusive rights to operate sports betting.
Under LD 1164, the Penobscot Nation, Passamaquoddy Tribe, Aroostook Band of Micmacs, and Houlton Band of Maliseet Indians can each partner with a single licensed online casino platform. Licenses cost $50,000 annually and online casino operations can begin 90 days after the current legislative session adjourns.
An attorney representing Oxford Casino declined to comment on the case. Press Reporter. The governor’s office said it does not comment on pending litigation.
