A bill in Maine that would have legalized online casino gambling and allowed operators to partner with the Wabanaki Nations stalled in committee on Monday.
LD 1164, which was introduced just last week, was tabled by unanimous vote in the Joint Veterans and Legal Affairs Committee on April 7.
The bill would have given each of the four federally recognized tribes in Maine one license to contract with an operator. The Wabanaki already offer online sports betting through a similar setup. Three of the tribes have a partnership with Caesars Sportsbook and the other contracted DraftKings as its operator.
The proposal was a reworking of a bill that passed through the Senate after multiple amendments last year but was voted down in the House 75-70. This year, the sponsors raised the proposed tax rate from 10% to 16%.
While slot machines and table games are regulated by the Maine Gambling Control Board, the bill would have placed regulation of mobile-based slot machines and table games under the purview of the Gambling Control Unit instead. The Unit already regulates mobile sports wagering and fantasy sports in the state.
Bill faced opposition and questions
LD 1164 had bipartisan support and the Wabanaki Alliance but faced stiff opposition from casino operators Churchill Downs and PENN Entertainment, as well as Maine Gambling Control Board Chair Steve Silver and other parties.
Other sportsbooks, including FanDuel, BetMGM and Fanatics, urged lawmakers to amend the bill to either allow other operators to join the market or let tribes partner with more than one operator.
The committee noted that several requests and questions had been submitted since the bill was filed, including a breakdown of existing casino revenue streams, an economic impact assessment, a study from the National Association Against iGaming (NAAiG) on potential impacts on retail gaming and a legal opinion of whether tribal-exclusive iGaming would violate the state Constitution.
Legislative analyst Rachel Olson added that allocation of funds was the most discussed component of the bill by stakeholders.
Is the presence of illegal gaming reason to regulate?
Rep. Anne Graham noted that a repeated topic in witness testimony was the amount of illegal gaming allegedly happening already in Maine.
“I wondered if we have any sense of what’s happening out there? My impression was that this is happening and it’s illegal, other states have chosen to make it legal, so I don’t know if we have any statistics or any awareness of how much of that is going on.”
Olson noted that she has not been provided with data points around illegal gambling in Maine.
“It should be noted that there are probably lots of things that are happening illegally, and that is not always a reason to authorize the activity,” she added. “That was pointed out by people who did submit follow-up information as well as at the public hearing … We were told that there are states that are pursuing other pieces of legislation to increase enforcement of actors who are operating illegally within the state.”
More time and study needed
Chair Craig Hickman voiced a desire to explore that “valid public policy question,” as well as another query raised by Graham regarding public health aspects and youth engagement in gambling.
“I think we still have a little more information, and my hope is that the sponsor of the bill will come forward with some positive amendments that might make this bill even better if we do choose to pass it,” Graham noted, before proposing a motion to table that was unanimously supported.
