Maine legalizes iGaming with tribal-exclusive framework

• Governor Mills allows LD 1164 to become law without signature, making Maine the 8th US state to legalize online casino gambling.
• Four Wabanaki tribes granted exclusive iGaming licenses with 18% tax rate on gross gaming revenue.
• Maine Gambling Control Board opposed the bill unanimously, citing monopoly concerns and projected job losses at commercial casinos.

Governor Janet Mills allowed legislation establishing online casino gaming to become law without her signature on 8 January 2026, granting Maine’s four federally recognized Wabanaki Nations exclusive rights to operate iGaming platforms.

The decision makes Maine the 8th US state to legalize online casino gambling. The bill, known as LD 1164, passed the Maine Legislature in late June 2025. Mills announced her decision not to sign or veto the measure, allowing it to become law automatically.

Tribal sovereignty influenced governor’s decision

Mills released an official statement explaining her position. She met with the five elected chiefs of the Wabanaki Nations during autumn 2025, who spoke about the bill’s importance.

“This fall, I met with the five elected Chiefs of the Wabanaki Nations, who each spoke passionately about the importance of this bill in offering life-changing revenue for Tribal communities, as well as providing a form of economic sovereignty for their Nations,” Mills stated.

She acknowledged concerns about gambling’s impact on public health. The governor expressed confidence that Maine’s Gambling Control Unit would develop responsible rules.

“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,” Mills added.

The decision marked a shift from her administration’s earlier stance. Her gambling regulators testified against LD 1164 in March 2025, stating they opposed any gambling expansion. The Maine Center for Disease Control and Prevention also opposed the bill during public hearings.

Four tribes receive exclusive online casino licenses

The legislation grants exclusive iGaming rights to four federally recognized tribes.

The Penobscot Nation has partnered with Caesars Entertainment. Both Passamaquoddy Tribe at Pleasant Point and Passamaquoddy Tribe at Indian Township partnered with DraftKings. The Houlton Band of Maliseet Indians also partnered with Caesars Entertainment.

Each tribe may contract with one third-party platform operator. This creates a maximum of four licensed iGaming platforms statewide. The tribes can offer poker, blackjack, roulette, baccarat, dice, craps, and online slots.

Chief Kirk Francis of the Penobscot Nation emphasised the revenue’s importance.

“These revenues will fund essential governmental services for our people like health, education, housing, law enforcement, social services, environmental management, pay for improvements in tribal infrastructure, fund cultural and youth programs, and promote tribal self-sufficiency and economic development,” Francis said.

Chief Clarissa Sabattis of the Houlton Band framed the legislation as consumer protection.

“For too long black-market websites have hosted illegal iGaming, with no protection for our youth and vulnerable adults. LD 1164 will create a closely regulated iGaming market with strict controls and will ensure much needed revenues remain in Maine,” Sabattis commented.

Legislature passed bill with narrow margins

LD 1164 followed a contentious path through Maine’s 132nd Legislature. The bill was referred to the Committee on Veterans and Legal Affairs on 20 March 2025. The committee reported divided results on 30 May 2025, with the majority recommending passage.

The House passed the bill on 13 June 2025 by a vote of 85-59. Amendment H-393 raised the proposed tax from 16% to 18%. The Senate initially failed to pass the measure on 12 June with a tied vote of 17-17. The Senate reconsidered and passed the bill on 16 June by 18-17.

The Legislature enacted the bill on 25 June 2025 before adjourning. Representative Ambureen Rana sponsored the bill with co-sponsorship from Representative Aaron Dana, the Passamaquoddy Tribal Representative.

Gambling Control Board unanimously opposed legislation

The Maine Gambling Control Board voted 5-0 on 16 December 2025 to urge Governor Mills to veto LD 1164. Chairman Steven J. Silver authored the opposition letter dated 17 December 2025.

The Board argued that excluding Oxford Casino and Hollywood Casino from iGaming creates a monopoly harmful to consumers. They projected 100-200 job losses at the commercial casinos. Oxford Casino specifically estimated 120 positions at risk.

The Board raised concerns about underage access to online gambling. They warned about the inability of online casino companies to stop teenagers and children from accessing iGaming.

Chairman Silver clarified his position at the December meeting.

“I probably differ from the licensees in that I actually support iGaming, just not in this format that cuts them out,” Silver stated.

The Board also objected to LD 1164 placing regulatory authority under the Maine Gambling Control Unit Director. This differs from existing statutes where the Board regulates slots and table games at commercial casinos.

Tax structure and revenue allocation established

The legislation imposes an 18% tax on gross gaming revenue. This increased from the original 16% proposal via Amendment H-393. Each operator pays a $50,000 annual platform license fee.

State tax revenue is earmarked for multiple programs. These include the Gambling Addiction Prevention and Treatment Fund, Opioid Use Disorder Prevention and Treatment Fund, Maine Veterans’ Homes Stabilization Fund, Fund for Healthy Maine, Emergency Housing Relief Fund, school renovation loans, E-9-1-1 Fund, and General Fund administrative expenses.

Legislative estimates project approximately $3.6 million in state tax revenue during the first year. Industry analysts project $57.9 million in annual gross gaming revenue at maturity. This would yield approximately $10.4 million in state taxes annually.

The iGaming market is expected to be three to four times larger than Maine’s sports betting market.

Framework builds on tribal sports betting model

Maine’s sports betting launched on 3 November 2023 under separate legislation. The iGaming framework mirrors this tribal-exclusive model. Sports betting carries a 10% tax rate, compared to 18% for iGaming. Sports betting operators pay a $200,000 licence fee, compared to $50,000 for iGaming.

The Passamaquoddy partnership with DraftKings currently dominates Maine’s sports betting market. The partnership captured 82% of online sports wagering revenue through November 2025. That partnership has generated more than $100 million in gross revenue since 2024.

The higher iGaming tax rate reflects what legislators described as higher predictability of revenue in casino-style games compared to sports wagering. Commercial casinos operate retail sportsbooks but are excluded entirely from online casino gaming.

Launch expected late 2026 with potential referendum challenge

The law takes effect 90 days after the 2026 legislative session adjourns. The statutory adjournment date is 15 April 2026. This places the projected effective date in mid-July 2026.

Following the effective date, the Maine Gambling Control Unit must complete rulemaking. This includes establishing licensing standards, platform requirements, responsible gaming protocols, and tribal partnership frameworks.

Industry consultant Gene Johnson of Victor-Strategies estimates the state needs not more than three months post-rulemaking to launch operations. This suggests a realistic launch window of fall 2026.

The National Association Against iGaming, backed by commercial casino operators Churchill Downs and PENN Entertainment, has threatened a people’s veto referendum. Opponents would have 90 days after the law takes effect to gather signatures.

A December 2025 poll commissioned by the organization found 64% of Maine voters oppose online gambling. Tribal leaders question the poll’s methodology.

Chief William Nicholas Sr. of the Passamaquoddy Tribe responded to potential referendum challenges.

“If this is something that we have to get prepared to fight about with whoever the organizations are or the casinos, it’s unfortunate because that’s not what this is about. But we won’t roll over,” Nicholas said.

He called Mills “the greatest ever Maine Governor champion for Wabanaki economic progress” and described the legislation as “an economic turning point for the Passamaquoddy people and for all Wabanaki Nations”.

The law represents the latest example of progress Mills has made with the Wabanaki Nations. The Governor’s office characterized it as surpassing achievements under other governors for the past four decades.

Maine’s tribal-exclusive iGaming model differs from most US states that adopt competitive licensing processes. The framework prioritises tribal economic development through exclusive market access. Maine becomes the 8th state to authorise online casino gaming, joining New Jersey, Pennsylvania, Michigan, West Virginia, Connecticut, Delaware, and Rhode Island.

The state separately moved to regulate online sweepstakes casinos through dual-currency legislation. For developments in Maine’s evolving gaming landscape, stakeholders will monitor implementation progress and market performance throughout 2026.