Churchill Downs’ Oxford Casino sued Maine regulators last week, arguing the state’s new tribal-exclusive iCasino law violates equal protection laws by granting four Wabanaki Nations a race-based monopoly.
Oxford Casino Hotel, which Churchill Downs owns, filed the lawsuit last week against the Maine Gambling Control Unit (MGCU) in the US District Court of the District of Maine.
Oxford Casino said the iCasino expansion will cost the state’s two land-based casinos hundreds of jobs and cannibalise gambling revenue. The lawsuit estimates the losses amount to 378 jobs, $22 million in labor income and $60 million in further economic impact.
“All these harms are the direct consequence of a race-and-geography-based monopoly,” the lawsuit reads. “If the Maine legislature has made the choice to allow iGaming within the state, it should give everyone a fair chance to compete, without regard to race or citizenship, as both the United States and Maine constitutions require.”
Oxford Casino is seeking to have the law declared illegal.
Governor Janet Mills allowed iCasino legalisation to go into effect earlier this month. The law grants the state’s four tribes iCasino exclusivity. The tribes already hold online sports betting exclusivity, with Caesars and DraftKings as partners.
MGCU Executive Director Milton Champion, who is named in the lawsuit, said he has not received notification of a pending lawsuit as of Thursday afternoon. Champion also said he does not comment on pending litigation.
Maine iCasino legislative opposition
Churchill Downs is a founding member of the National Association Against iGaming (NAAiG). The group advocates nationwide against online casino expansion. Churchill Downs said in the lawsuit it would prefer no online casinos in the state, but if there is going to be a regulated industry, the company should be able to participate.
Oxford Casino and Penn Entertainment’s Hollywood Casino Hotel & Raceway Bangor both testified against the tribal online gaming bills throughout the legislative process. The state’s two brick-and-mortar casinos argued tribal exclusivity was unfair to the commercial entities and would cannibalise their revenue.
Mills’ office, as well as Maine Gaming Control Board Chairman Steve Silver, testified against the expansion, which Silver called “ill-advised”.
Despite the strong opposition, Mills allowed it to become law this year. She said it was to help improve the lives of the Wabanaki Nations.
Following the passage, NAAiG said it was disappointed in Mills’ decision to go against her iCasino opposition. Along with the Churchill Downs lawsuit, NAAiG said it would lead a People’s Veto initiative to overturn the law by putting it to a public referendum. NAAiG declined further comment this week.
“This decision represents a clear break from the governor’s previously stated position and disregards overwhelming public opposition, expert warnings from her own regulators and a proven gaming framework that has delivered meaningful benefits to Maine communities and tribal nations for more than a decade,” a NAAiG statement said. “It is important to be clear. Tribal nations already benefit from the existing casino tax structure. Opposition to this bill is not about excluding tribes or protecting narrow interests.
“It is about preserving a model that has worked for Maine workers, Maine communities and tribal governments alike. Dismissing these concerns as self-interested complaints ignores both the facts and the substantial public stake involved.”