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The four federally recognized tribes in Maine might soon take their gaming activities into the virtual world because the state legislators have resurrected a bill that will give the tribes exclusive rights to run online casinos. Wabanaki Nations, which includes the Maliseet, Micmac, Passamaquoddy and Penobscot tribes, would be the only entities allowed to offer internet-based casino gaming, should the measure be enacted into law.
The legislation, known as Legislative Document 1164, emerged from the Veterans and Legal Affairs Committee after previously being tabled in March, catching industry observers by surprise during the current special legislative session. Under the proposed framework, each tribe would be authorized to partner with a single online gaming operator, opening potential collaborations with established platforms in the rapidly expanding online casinos market that has revolutionized igaming in seven other states.
This tribal exclusive strategy is a sharp contrast to the gaming policy in the majority of the states, where commercial operators are in the dominant position in the online casino arena. Based on the success of the tribal sports betting model within Maine, with three out of four tribes choosing to collaborate with Caesars Sportsbook and the Passamaquoddy selecting DraftKings, the suggested Maine model expands on this success. This collaborative strategy has generated steady revenue while preserving tribal autonomy over gaming decisions.
The timing of the legislation's revival coincides with ongoing budget discussions during Maine's special legislative session, where state officials are seeking new revenue streams. Financial projections estimate the state could collect $1.8 million in the first year and $3.6 million annually thereafter through a 16% tax on gross gaming revenue.
In the case of tribal gaming businesses throughout Indian Country, the Maine legislative effort has implications well beyond its borders. With an increasing pressure on the traditional casino operations due to the digital gaming platforms, tribal leaders across the nation are reviewing measures to ensure that they retain competitive edges and safeguard their sovereign rights to play games. The Maine proposal provides the possible framework of how tribes can accept technological development without losing the control over their gaming operation.
The move to online gaming has essentially changed the nature of consumer behavior as gamers are now finding it far more convenient to play games at the comfort of their homes, as opposed to traveling to actual casino venues. This phenomenon has compelled tribal casino operators to rethink their business models especially in areas where their adjacent states provide online gaming opportunities. This approach by Maine would help give tribal enterprises the much needed competitive advantage since it would mean they are not competing with the digital gaming economy but are a part of it.
Tribal gaming experts around the nation are following the proceedings of the Maine legislation very closely because a successful enactment would give a boost to related efforts in other states. The tribal-only rights to digital gaming may become a precedent affecting the policy debate in any place where tribes have major casino businesses and where they compete with growing gaming markets.
However, the legislation confronts substantial resistance from Maine's commercial casino operators. Penn Entertainment, which operates Hollywood Casino Bangor, and Churchill Downs, which runs Oxford Casino Hotel, argue that online gaming would cannibalize their clientele and destroy hundreds of jobs while decreasing state tax collection by tens of millions annually. This opposition reflects broader industry tensions between commercial gaming interests and tribal gaming sovereignty.
The resistance from commercial operators underscores the economic stakes in digital gaming expansion. To the tribal communities, the capability to run online casinos is a confirmation of their implied sovereignty and entitlement to modify the conventional businesses to fit the contemporary technological conditions.
Governor Janet Mills presents another potential obstacle to the legislation's advancement. She is traditionally against the expansion of gambling, but she did sign the 2022 bill that gave exclusive sports betting rights to tribes. The complicated politics of tribal gaming rights are evidenced by her earlier veto of a bill that would have given the tribes permission to conduct gaming businesses on their reservations.
Despite these obstacles, the legislation's progression through the committee suggests growing recognition that tribal gaming rights deserve protection and expansion. The special legislative session, which continues through June 18, provides a critical window for advocates to build support.
For Maine's tribal communities, the legislation represents an opportunity to build upon their successful sports betting operations while ensuring their gaming enterprises remain competitive digitally. The outcome will likely influence their economic prospects and their ability to exercise sovereignty over gaming activities.