A newly enacted Maine law granting exclusive online casino gaming rights to the state’s federally recognised Tribes is facing a constitutional challenge in federal court, led by Oxford Casino Hotel, BB Development and parent company Churchill Downs Incorporated.
The lawsuit, filed in the US District Court for the District of Maine, challenges the legality of An Act to Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming, which came into force on 11 January 2026.
The legislation authorizes internet casino-style gaming in Maine for the first time but restricts licenses exclusively to the state’s four federally recognized Tribes, collectively known as the Wabanaki Nations.
Under the law, each Tribe is eligible for a single iGaming license, which may only be operated by the Tribe itself or a wholly owned tribal business entity.
Non-tribal commercial operators, including Maine’s two existing land-based casinos, are excluded from applying for or acquiring licenses.
The plaintiffs argue that the framework creates an unlawful monopoly that violates the Equal Protection Clauses of both the US and Maine Constitutions, as well as the dormant Commerce Clause by excluding out-of-state operators.
The complaint also alleges the law constitutes impermissible “special legislation” under the Maine Constitution by granting exclusive economic privileges to a defined group.
Oxford Casino and Churchill Downs claim the law will lead to material economic harm, including lost revenue, reduced tax contributions and job losses.
The filing cites industry research suggesting that the introduction of iGaming can result in an average 16% decline in land-based casino revenue, with projected impacts in Maine including hundreds of lost jobs and tens of millions of dollars in reduced economic output.
The plaintiffs are seeking declaratory and injunctive relief to block enforcement of the law, arguing that if Maine has chosen to legalize iGaming, access should be determined through an open and competitive licensing process.
The case adds a new legal dimension to Maine’s ongoing debate over online gambling expansion, which has already drawn opposition from retail casino advocates and industry groups.
Maine is set to become the eighth US state to legalize iGaming, with tribal-operated platforms currently expected to launch in the second quarter of 2026
