Maine’s four Wabanaki Nations have formally joined a federal legal dispute over the state’s new online casino law, stepping into a case originally brought by Churchill Downs, which operates Oxford Casino Hotel. The tribes were brought in to challenge the measure. This includes the Houlton Band of Maliseet Indians, Mi’kmaq Nation, Passamaquoddy Tribe, and Penobscot Nation. The request to intervene in the lawsuit was quickly approved by a judge. The case centers on opposition to the state granting tribes exclusive rights to operate online casinos.
Oxford Casino Hotel is one of Maine’s two retail casinos. The federal lawsuit was filed in January contesting LD 1164, the legislation granting the Wabanaki Nations exclusive rights to operate online casino games in the state.
From the casino’s perspective, they argue that the measure effectively creates a monopoly, claiming it violates the Equal Protection Clauses of both the U.S. and Maine constitutions.
This operator maintains that if iGaming is permitted, commercial casinos should be included rather than excluded from participation.
Under this new framework, each of the four tribes can partner with a single licensed platform provider, with annual license fees set at $50,000. The legislation is scheduled to take effect 90 days after the close of the current legislative session.
By entering the case, the Wabanaki Nations are framing the dispute as one that extends beyond online gambling policy.
Their legal argument suggests that Oxford Casino’s challenge, particularly its reliance on equal protection claims, could have far-reaching implications for how federal law recognizes and treats tribal governments.
Attorneys representing the tribes argue that accepting those claims could call into question longstanding legal distinctions that recognize federally acknowledged tribes as sovereign political entities.
In their view, such an outcome would not only affect gaming laws, but also potentially disrupt a wide range of policies built around tribal self-governance.
Lenny Powell of the Native American Rights Fund, who is representing the tribes, characterized the lawsuit as an attempt to erode established tribal-state relationships. He argued that policies supporting tribal self-determination have historically produced broader benefits for both Indigenous and non-Indigenous communities.
While the tribal-exclusive model is designed to support economic development for the Wabanaki Nations, it has also raised concerns about reduced competition in Maine’s online casino market.
Limiting licenses to a small number of operators could result in fewer options for consumers, potentially affecting everything from game variety to promotions and pricing.
A more open market that includes both tribal and commercial operators would foster stronger competition, which would create more favorable user experiences. Without that competitive pressure, players may deal with a more limited overall product.
