Legislation that legalizes online casinos in Maine will not become law until at least 2026 following Gov. Janet Mills’ (D) decision this week.
Mills’ office on Tuesday released a list of 60 bills on which she won’t act on until the next Legislature reconvenes in January. Included on her list was Legislative Document 1164 (LD 1164), which would make Maine the eighth state in the US with a legal online casino market.
This isn’t the first time that Mills has poured cold water on iGaming in Maine. Her administration testified against the bill during its legislative process, though the bill was passed in June and forwarded to her desk.
Brakes applied
Maine legislators introduced the online casino bill in January near the beginning of the recently-ended legislative session. The bill was tabled in April but picked up steam and was eventually one of 117 that were sent to Mills.
Online gambling has proven to be an extremely lucrative industry for states, both with respect to sports betting and iGaming.
While Maine launched online sports betting in November 2023, it continues to miss out on revenue that nearby states with legal online casino markets – such as Delaware, New Jersey, and Pennsylvania – are not.
Despite the money at stake, Mills was just one of several officials who registered opposition to the bill. The Maine Gambling Control Unit, the Gambling Control Board, and the state’s two retail casinos, Hollywood Casino Hotel & Raceway Bangor and Oxford Casino Hotel, also testified against it during the legislative process.
For proponents, a delay is better than an outright veto.
As the governor, Mills has the power to veto a bill and send it back to lawmakers. A two-thirds majority in both chambers, which was not present during the initial voting, would be required to overrule her veto and enact the bill into law.
Money to be made
LD 1164 awards online casino exclusivity to the state’s four tribes: the Maliseet, Mi’kmaq, Passamaquoddy and Penobscot.
Three of the tribes – the Maliseet, Mi’kmaq, and Penobscot – are currently partnered with Caesars. The Passamaquoddy is partnered with DraftKings.
Supporters argue the legalization of iGaming would provide a massive economic stimulus to the state. Expectations are that $19 million in annual revenue would be generated for the tribes and their partners, while the state would receive $3.5 million in tax funding based on an 18% rate.
While that might seem insignificant compared to the totals generated in other larger states, Maine’s sports betting industry created just $5.5 million in tax funding in 2024. That means the extra $3.5 million would put Maine 63.6% ahead of where it is with sports betting.
In total, Maine’s sports betting market has created close to $10 million in taxes since it launched.