Churchill Downs Faces Wabanaki Nations in Maine iGaming Monopoly Fight
Maine legalised iGaming in January 2026 and gave exclusive online casino rights to four tribal nations. The Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of Maliseet Indians, and the Mi’kmaq Nation hold those rights. Oxford Casino and Hollywood Casino Hotel and Raceway were excluded.
Churchill Downs, parent company of Oxford Casino, filed a federal lawsuit in response. The company called the arrangement a “race-based monopoly” in violation of equal protection clauses under both the US and Maine constitutions.
The Wabanaki Nations filed a joint motion to intervene and became direct parties in the case on Thursday. Their attorneys argue that rights extended to tribal nations are political classifications, not racial ones. The Supreme Court has repeatedly upheld that distinction.
Maine’s iGaming market could generate $200 million annually, according to one Wall Street analyst cited in the source report. The law sets a 16% revenue tax. Each tribe can partner with a commercial operator to offer statewide online casino games. Bovada and DraftKings partner with three of the four tribes on sports betting. Caesars holds the fourth relationship.
Maine’s sports betting market produced $66 million in profits last year, according to the source report.
The National Association Against iGaming has threatened a ballot initiative to overturn the law. Governor Janet Mills let the bill pass without her signature.
TGJ Take
DraftKings, Bovada, and Caesars have existing deals with Maine’s tribal nations and are first in line for a $200 million online casino market. No other operator can enter while the lawsuit runs. The ballot initiative runs on a separate track. Churchill Downs could lose in court, and the law could still be overturned by a public vote.
