Wabanaki Nations Joining the Fray in Maine iGaming Lawsuit

^{The Maine State House in Augusta, where Governor Janet Mills allowed the Wabanaki Nations' exclusive iGaming rights to take effect in January despite opposition from state regulators and the state's two brick-and-mortar casinos. (Photo: Tim Clark / Alamy)}

The Wabanaki Nations have now been approved to intervene in a lawsuit challenging a new iGaming law in Maine.  All four Wabanaki tribes filed a joint motion to intervene in the lawsuit brought by Oxford Casino earlier this year, after the Maine casino argued that the iGaming law amounted to an illegal “race-based monopoly.” 

Oxford Casino filed its lawsuit in January, suing the state after it granted the Wabanaki tribes exclusive rights to online casino games in Maine.

Regulators, Casinos Opposed Wabanaki iGaming Bill

All four of those tribes filed a joint motion on Wednesday seeking to participate in the case, and a judge approved it on Thursday.

The Wabanaki Nations already enjoy the exclusive right to offer online sports betting in the state. But on Jan. 8, Maine Governor Janet Mills allowed a second bill to become law after months of deliberation on whether to expand tribal offerings to include iGaming. Mills made her decision despite pushback not only from the state’s two brick-and-mortar casinos, but also from state regulators.

The Maine Gambling Control Board made its position clear in a letter to Mills in December, writing that while board members held varying personal views on iGaming legalization, they were unified in opposing the exclusivity provision:

“Although the board has varying personal opinions about the general merits of legalizing Internet Gaming, we are unified in our belief that any qualified operator should have the ability to obtain an iGaming license, including the Wabanaki Nations. Cutting out Oxford and Hollywood Casinos entirely from offering iGaming is ill-advised and creates a monopoly that is harmful to consumers and the Maine workers employed by Oxford and Hollywood Casinos.”

Just weeks later, Oxford Casino filed its lawsuit, with Gambling Control Unit Executive Director Milton Champion as the defendant. The casino argued that the iGaming law violated both the US Constitution and the Maine Constitution, each of which has its own Equal Protection Clause.

“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,” the lawsuit states.

Wabanaki: Bill Is Based on Tribal Sovereignty, Not Race

However, the Wabanaki Nations take issue with that characterization of the legislation. In their motion to intervene, they argue that the law recognizes the tribes’ status as sovereign nations rather than providing a benefit based on race.

“Adopting Plaintiffs’ equal protection theories could threaten the validity of countless laws that classify based on the unique sovereign status of federally recognized tribes,” reads the motion from the Wabanaki Nations. 

Lenny Powell, an attorney with the Native American Rights Fund, added that the lawsuit is an attack and part of an "unfortunate effort" to undermine the partnership between Maine and the tribes.

“[The lawsuit] seeks to undermine the legal basis for constructive government-to-government policy collaboration, despite decades of data showing that tribal and nontribal communities alike are stronger when Tribal nations are empowered in their pursuit of self-determination," said Powell.

Unless legal challenges to the law are successful, Maine will become the eighth US state to legalize and regulate online casinos. Others include Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.