Maine Tribes Join Defense of iGaming Exclusivity Law

Key Takeaways - A federal judge has permitted Maine's Wabanaki Nations to join the legal defense of their exclusive online casino gaming rights.

• **The lawsuit was filed by Churchill Downs Inc.operator of Oxford Casino, which argues the exclusivity law is an unconstitutional, race-based monopoly.
• **Tribal leaders frame the law as a critical economic partnership with the state, while a recent poll shows 64% of Maine voters oppose iGaming legalization.

Tribes Enter Maine Online Gaming Lawsuit A federal judge has formally allowed Maine's Wabanaki Nations to intervene in a high-stakes lawsuit that will determine the future of online casino gaming in the state.

The decision allows the tribes to act as defendants, joining the state in defending a law known as LD 1164. This 2026 law grants the tribes the exclusive right to conduct or partner for online casino operations, or iGaming, within Maine. The challenge comes from Churchill Downs Incorporated, the parent company of Oxford Casino. The company's lawsuit, filed shortly after the law was passed, claims that granting exclusive online gaming rights to the tribes constitutes an unlawful monopoly that violates equal protection clauses in both the state and federal constitutions.

Churchill Downs' Constitutional Challenge At the heart of the lawsuit is Churchill Downs' argument that LD 1164 unfairly discriminates against commercial operators.

The company contends the law creates a market closed to competition based on the identity of the operator, which they allege is a form of race-based preference prohibited by law. As the operator of the successful Oxford Casino, Churchill Downs has a significant financial interest in either participating in the online market or preventing it from launching under an exclusive tribal model. Their legal filing targets the very foundation of the legislation. Forcing the issue into federal court puts the state-tribal agreement under a microscope.

A Defense of Sovereignty and Partnership Tribal representatives have characterized the lawsuit as an attack on their economic future and a carefully negotiated partnership with the state of Maine.

Lenny Powell, a representative for the tribes, described the legal challenge as "an unfortunate effort to undermine Tribal-state partnership." > "This law is a product of collaboration and is designed to provide economic opportunities that are vital for the Wabanaki people and their communities," Powell stated in a press release. This isn't the first time Maine has granted tribes exclusive market access. The state previously awarded the Wabanaki Nations a monopoly on online sports betting, a move that set a precedent for their role in Maine's digital gaming expansion. The success of that model is a key pillar of the tribes' argument for defending their exclusive iGaming rights.

A Complicated Legal and Political Backdrop This legal battle is uniquely shaped by Maine's history.

The Maine Indian Claims Settlement Act of 1980 subjects the tribes to a greater degree of state jurisdiction than is common in other parts of the United States. This distinction means federal laws that have bolstered tribal gaming sovereignty elsewhere don't apply in the same way, making state-level agreements like LD 1164 all the more significant. Adding another layer of complexity is public sentiment. A poll conducted in late 2025 revealed that 64% of Maine voters oppose the legalization of iGaming, with 49% strongly opposing it.

This widespread opposition could factor into the political calculus as the legal proceedings unfold. While the court will rule on constitutional merits, the lack of public support for the underlying activity is a powerful political headwind. Commercial casinos, including Oxford Casino and Hollywood Casino in Bangor, are currently prohibited from the online gaming market under the new law, though they are permitted to operate retail sportsbooks on their properties.

What Comes Next in the Maine iGaming Lawsuit The court's decision to allow the tribes to intervene is a procedural step, not a final ruling on the merits of the case.

With the tribes now officially part of the defense, the next phase will involve pre-trial motions and discovery, where both sides gather evidence and present detailed legal arguments. The case will proceed through the federal court system, and its outcome could redefine the relationship between the state and the Wabanaki Nations. A ruling in favor of the state and the tribes would solidify their exclusive access to a new, potentially lucrative online market. A ruling in favor of Churchill Downs could invalidate the law, forcing Maine's legislature back to the drawing board and potentially opening the market to commercial competition.