Churchill Downs, the parent company of Oxford Casino, has filed a federal lawsuit challenging Maine’s new online casino law LD 1164, which grants exclusive iGaming rights to the state’s four federally recognized tribes. The law took effect in January after Governor Janet Mills declined to veto it, allowing it to pass without her signature.
The complaint, filed in the U.S. District Court for the District of Maine, argues that the legislation violates equal protection provisions within both the U.S. and Maine constitutions. Churchill Downs says it is being shut out of a market in which it would otherwise seek to operate, asserting that the state has effectively created what it calls a “race-based monopoly.”
Churchill Downs contends that the tribal-exclusive system will materially harm existing gaming businesses, including its own Oxford Casino. The operator points to industry research indicating that online casino legalization can reduce land‑based casino revenue by about 16% on average.
The lawsuit further claims that Maine could lose hundreds of jobs as a result of the new structure. Estimates cited in the complaint project the loss of roughly 378 jobs, $22 million in labor income, and $60 million in total economic value statewide if the law remains in place.
Under the new statute, only the Houlton Band of Maliseet Indians, the Mi’kmaq Nation, the Passamaquoddy Tribe, and the Penobscot Nation are eligible to hold online casino licenses. Non‑tribal operators cannot apply, nor can they acquire a license through a transfer unless they are wholly owned by a tribe.
This exclusivity echoes Maine’s sports betting model, which also restricts market access to the same four tribes. While tribes may partner with large commercial brands to run gaming platforms, non‑tribal casinos like Oxford Casino remain entirely excluded from participation.
Supporters of the law argue it is designed to correct long‑standing limitations on tribal sovereignty stemming from the Maine Indian Claims Settlement Act of 1980. That framework historically prevented tribes from operating traditional casinos, meaning online gaming now provides a practical avenue for economic development.
However, Churchill Downs maintains that if Maine intends to allow online casinos, it should adopt an open licensing process. The company says it would prefer no iGaming market at all; if one exists, it seeks what it calls a fair chance to compete. The lawsuit now places Maine at the center of a broader national debate over tribal exclusivity in digital gaming.
