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Oxford Casino, owned by Churchill Downs, has filed a federal lawsuit challenging Maine’s new iGaming law, which stipulates that only the state’s four federally recognized tribes can operate online casinos.
The lawsuit argues the law is unconstitutional because it discriminates against out-of-state businesses, violating the commerce clause as well as state and federal equal protection guarantees. The complaint was filed Jan. 23 in the US District Court for the District of Maine.
How Maine’s online casino law restricts market access
The new iGaming law grants exclusive rights to operate real-money online casinos to Maine’s four federally recognized tribes. Specifically, only the Maliseet Indians, the Mi’kmaq Nation, the Penobscot Nation and the Passamaquoddy Tribe may operate online casinos in the state.
Oxford Casino had previously expressed interest in applying for a Maine iGaming license, which is prohibited under the new law. In addition, the law restricts license transfers to businesses wholly owned by a tribe, preventing Oxford Casino from acquiring an iGaming license through a tribal partnership.
The law took effect Jan. 11 after Gov. Janet Mills declined to veto it. “It has always been my strong desire to work with tribal leaders to improve the lives and livelihoods of the Wabanaki Nations, and it is my hope that this new revenue will do just that,” Mills said in a statement.
The online casino law mirrors Maine’s 2022 online sports betting legislation, which also grants tribes exclusive rights to operate online sportsbooks and was approved by Mills. Maine is the eighth state to legalize online casinos and the newest market since 2023. However, real-money online casinos are not expected to launch for 12 to 18 months.
In the interim, Maine’s Gaming Control Unit may issue temporary licenses to tribes that meet basic requirements, allowing them to operate while completing the full licensing process.
Oxford Casino alleges constitutional violations
“Promoting iGaming through race-based preferences deals a gut-wrenching blow to Maine businesses like Oxford Casino that have heavily invested in the state and its people,” Oxford Casino said in the complaint.
“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 a declaration that the law is unconstitutional, along with an injunction to prevent its enforcement.
The complaint also cites potential negative effects on existing brick-and-mortar casinos. Oxford Casino currently employs 364 people and paid more than $40 million in taxes in 2025.
According to the filing, the introduction of online casinos reduces land-based casino revenue by approximately 16%. Industry research cited in the complaint indicates online casinos could lead to the loss of 378 jobs statewide, resulting in about $60 million in lost economic value and roughly $22 million in lost labor income.
