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Churchill Downs vocally opposed the idea of legalizing online casino gaming in Maine last year as the bill moved through the legislature. Now that the law has been enacted, the casino operator is taking the issue to court.
The company and its Oxford Casino Hotel filed suit against the Maine Gambling Control Unit (MGCU) and MGCU Executive Director Milton Champion in the U.S. District Court for the District of Maine on Jan. 23. The suit argues that Maine’s new online gambling law, which grants exclusive online casino rights to the state’s four federally recognized Wabanaki Nations, has “blessed a race-based monopoly” that violates equal protection laws and goes against constitutional restrictions on economic protectionism.
The suit seeks the court to block the enforcement of the law and declare it illegal.
Churchill argues that the legislation discriminates against Maine’s in-state casinos and also against out-of-state businesses, and that it does not align with the economic interests of the state or its residents.
“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,” states the court filing. “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.”
Churchill stated that the company would ideally like to have no online casino industry in Maine, but noted more than once that, if it is going to be a regulated industry, it would like a chance to participate because it is not a tribe.
The text of the online casino law stipulates that a tribe may transfer its internet gaming license to another entity, but only if that entity is wholly owned by that federally recognized Indian nation.
The suit also cites National Association Against iGaming (NAAiG) estimates that legal online casino could lead to hundreds of lost jobs and tens of millions of lost economic value. Churchill Downs is a founding member of NAAiG.
“There is no compelling government interest in privileging the economic interests of the Wabanaki Nations over the interests of all other persons and businesses within the state,” added the suit. “And even if promoting tribal welfare were the goal, granting an iGaming monopoly to the tribes is not tailored to promoting that interest.”
The two brick-and-mortar casinos were not alone. Online gaming operators such as FanDuel, BetMGM and Fanatics, multiple Maine government departments and Gov. Janet Mills’ office all also opposed the bill during the legislative process. Maine Gambling Control Board Chairman Steve Silver wrote in a letter to Mills before the law was enacted to warn that cutting out Oxford Casino and Hollywood Casino was “ill-advised” and “harmful” to consumers and Maine workers. Even Champion opposed the idea of expanding into online casino gaming.
Churchill Downs vocally opposed the idea of legalizing online casino gaming in Maine last year as the bill moved through the legislature. Now that the law has been enacted, the casino operator is taking the issue to court.
The company and its Oxford Casino Hotel filed suit against the Maine Gambling Control Unit (MGCU) and MGCU Executive Director Milton Champion in the U.S. District Court for the District of Maine on Jan. 23. The suit argues that Maine’s new online gambling law, which grants exclusive online casino rights to the state’s four federally recognized Wabanaki Nations, has “blessed a race-based monopoly” that violates equal protection laws and goes against constitutional restrictions on economic protectionism.
The suit seeks the court to block the enforcement of the law and declare it illegal.
‘A gut-wrenching blow’ to Maine casinos
Maine’s legal online casino framework mirrors its Sports Betting market by allowing each Wabanaki Tribe to partner with a commercial online gaming operator to offer statewide online gambling. DraftKings already works with three tribes to offer online Sports Betting and Caesars workswith the other. Unlike some other tribal online gaming agreements, the Maine law does not specify that activity should be hosted on or limited to tribal land and allows the tribes to offer online casino gaming anywhere within state borders.Churchill argues that the legislation discriminates against Maine’s in-state casinos and also against out-of-state businesses, and that it does not align with the economic interests of the state or its residents.
“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,” states the court filing. “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.”
Churchill stated that the company would ideally like to have no online casino industry in Maine, but noted more than once that, if it is going to be a regulated industry, it would like a chance to participate because it is not a tribe.
The text of the online casino law stipulates that a tribe may transfer its internet gaming license to another entity, but only if that entity is wholly owned by that federally recognized Indian nation.
The suit also cites National Association Against iGaming (NAAiG) estimates that legal online casino could lead to hundreds of lost jobs and tens of millions of lost economic value. Churchill Downs is a founding member of NAAiG.
“There is no compelling government interest in privileging the economic interests of the Wabanaki Nations over the interests of all other persons and businesses within the state,” added the suit. “And even if promoting tribal welfare were the goal, granting an iGaming monopoly to the tribes is not tailored to promoting that interest.”
Churchill Downs opposed tribal exclusivity every step of the way
Oxford Casino, one of two licensed brick-and-mortar casinos in Maine, testified in opposition to the measure last year. Alongside PENN Entertainment’s Hollywood Casino Hotel & Raceway Bangor, the properties argued that a tribal monopoly would be unfair to them and would cannibalize land-based gaming revenues.The two brick-and-mortar casinos were not alone. Online gaming operators such as FanDuel, BetMGM and Fanatics, multiple Maine government departments and Gov. Janet Mills’ office all also opposed the bill during the legislative process. Maine Gambling Control Board Chairman Steve Silver wrote in a letter to Mills before the law was enacted to warn that cutting out Oxford Casino and Hollywood Casino was “ill-advised” and “harmful” to consumers and Maine workers. Even Champion opposed the idea of expanding into online casino gaming.
