Maine gambling set to expand with online casinos becoming legal

Maine Governor Janet Mills announced last week she will allow a tribal-exclusive online casino bill to become law, reversing course from her administration’s prior opposition and positioning the state to become the eighth with legal iGaming.

Mills announced Thursday she will let 52 of 61 bills on her desk since the summer become law, including a bill granting the state’s four tribes exclusive rights to online casinos, LD 1164. The law goes into effect three months after the Legislature adjourns 15 April.

“I considered this bill carefully, and while I have concerns about the impacts of gambling on public health, I believe that this new form of gambling should be regulated, and I am confident that Maine’s Gambling Control Unit will develop responsible rules and standards to hold providers of this new form of gambling accountable while ensuring that Maine’s tribes benefit from its operations,” Mills said. “It has always been my strong desire to work with Tribal leaders to improve the lives and livelihoods of the Wabanaki Nations, and it is my hope that this new revenue will do just that.”

Mills had similar concerns about sports betting before signing that into law in 2022.

The 52 bills were held after the Legislature adjourned during the 10-day period the governor is provided to consider them. In that situation, if the governor does not sign the legislation within the 10-day window, Mills could only veto or allow them to pass into law after three days of the next session, which began Wednesday.

Maine online casino framework

The state’s four tribes will operate online casinos in the state, just as they hold exclusivity to online sports betting. Three of the tribes have partnered with Caesars for sports betting. The other, the Passamaquoddy Tribe, operates with DraftKings.

Maine will collect an 18% tax on the iCasino revenue. The tax on sports betting is 10%. State projections suggest Maine could bring in up to $100 million in tax revenue over the first decade.

Prior to Mills’s announcement, the Maine Gambling Control Board urged her to veto the bill. The MGCB believes the online expansion should include the state’s two commercial casinos.

“Granting the tribes a monopoly and cutting out the casinos, when we’ve seen from other states that legalizing iGaming cuts into casino revenue, that is going to have adverse tax consequences,” MGCB Chair Steven Silver said in the letter. “It could cause several hundred Mainers to lose their jobs.”

Additionally, the National Association Against iGaming has threatened a “people’s veto”, a process in Maine that gives voters a chance to repeal legislation in a statewide referendum. That proposal would need to gather enough signatures to qualify for the 2026 ballot within 90 days after the law goes into effect.

NAAiG has lobbied across the country against online casino expansion. The association includes Churchill Downs, which operates a casino in Maine.

iGaming win to start 2026

Online casino expansion in the US has slowed due to headwinds against the gambling industry from the rapid growth of the sports betting industry.

Lawmakers in multiple states introduced or hinted at online casino legislation last year, but few advanced far or even saw discussion of it.

Industry sources suggest similar bills could garner more consideration in 2026 as states continue to look for revenue to help solve budget shortfalls.

“It’s hard to handicap where it could cross the finish line,” industry consultant John Pappas said. “The fiscal arguments are more apparent and maybe even more important given the state budget struggles that are expected to emerge over the next year. That’s not going away.”

Lawmakers in Virginia have introduced an online casino bill, while legislators in Indiana have already discussed the issue in hearings on other gambling proposals.