Oxford Casino, a property owned by Churchill Downs Incorporated, has filed a lawsuit seeking to block Maine’s new iGaming law, which grants exclusive online gambling rights to the state’s federally recognized Wabanaki Nations. The suit claims the legislation establishes an unconstitutional, race-based monopoly and names the head of the Maine Gambling Control Unit as a defendant, requesting an injunction to halt enforcement.
The Contested Law
The legislation in question, LD 1164, was signed into law earlier this month after Governor Janet Mills opted not to veto it. The law gives exclusive iGaming rights to four Maine tribes:
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Penobscot Nation
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Passamaquoddy Tribe
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Mi’kmaq Nation
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Houlton Band of Maliseet Indians
Maine is poised to become the eighth U.S. state to legalize online gambling.
Oxford Casino’s Concerns
Oxford Casino, which employs 364 workers in Maine, argues that the bill will significantly cut its revenue and harm the local economy. The lawsuit cites a study from the National Association Against iGaming estimating that Maine could indirectly lose $60 million in economic activity and hundreds of jobs due to the exclusive iGaming arrangement.
The casino claims the law unfairly excludes non-tribal operators from entering the market:
“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 also cites potential violations of Equal Protection clauses under Maine and federal law. Under LD 1164, each Wabanaki Tribe may partner with one online gaming operator to offer services in the state.
Tribal Response: ‘Hypocritical’ Lawsuit
The Wabanaki Nations have sharply criticized Oxford’s legal challenge. Tribal leaders note that for years, they were locked out of gambling opportunities in Maine, while Oxford Casino was approved in 2010 despite repeated tribal bids for gaming.
Rep. Aaron Dana, representing the Passamaquoddy Tribe, said in comments to the Portland Press Herald:
“I think it’s very hypocritical.”
According to the lawsuit, Oxford is not opposed to online gambling outright—it seeks a more open and competitive market rather than exclusive tribal arrangements.
Churchill Downs and iGaming
Churchill Downs acquired Oxford Casino in 2013 for roughly $160 million. The company previously operated online platforms BetAmerica and TwinSpires, but exited the online gambling market in 2022 to focus on horse racing. Since then, Churchill Downs has actively advocated against online gambling and is a member of the National Association Against iGaming (NAAiG).
The case highlights the ongoing tension between tribal gaming rights and commercial casino interests, a debate that is likely to play out in Maine’s courts in the coming months.
