Churchill Downs Casino Sues Maine Over Tribal iCasino Law

A legal challenge has emerged in Maine after the state moved forward with a tribal-exclusive online casino framework, setting up a dispute between commercial operators and regulators.

Good to Know

• Oxford Casino sued Maine gambling regulators over iCasino exclusivity.
• The law grants online casino rights to four Wabanaki Nations.
• Churchill Downs argues the measure violates equal protection rules.

Churchill Downs owned Oxford Casino Hotel filed a lawsuit last week against the Maine Gambling Control Unit, challenging the state new tribal-exclusive online casino law. The case was lodged in the US District Court for the District of Maine.

Oxford Casino argues the legislation unlawfully grants the four Wabanaki Nations exclusive rights to offer iCasino games, creating what it describes as a race-based monopoly. The complaint claims the expansion would cost Maine commercial casinos hundreds of jobs and reduce economic activity, estimating losses of 378 jobs, $22 million in labor income, and $60 million in broader economic impact.

In the filing, Oxford Casino stated:

“All these harms are the direct consequence of a race-and-geography-based monopoly. 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.”

The lawsuit seeks to have the iCasino law declared illegal.

The measure took effect earlier this month after Janet Mills allowed the bill to become law without her signature. The legislation gives the four tribes exclusive control over online casinos, adding to their existing exclusivity in online sports betting through partnerships with Caesars and DraftKings.

MGCU Executive Director Milton Champion, who is named in the lawsuit, said he had not yet received formal notice of the filing and declined to comment on pending litigation.

Churchill Downs is a founding member of the National Association Against iGaming, which has opposed online casino expansion nationwide. Oxford Casino and Penn Entertainment owned Hollywood Casino Bangor both testified against the bill during the legislative process, warning that tribal exclusivity would undermine existing casinos.

Despite opposition from commercial operators and state regulators, Mills allowed the law to take effect, citing support for the Wabanaki Nations. Following passage, NAAiG said it would pursue a People’s Veto campaign to overturn the legislation.

In a statement, the group said:

“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.”

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