Maine has made history by becoming only the eighth U.S. state, and the first since Rhode Island in 2023, to legalise online casinos.
Despite vocal opposition from the Maine Gambling Control Board, Governor Janet Mills (D) signed the landmark legislation into law late yesterday, January 8, opening the door for the state’s four Native American Tribes to launch and operate iCasinos.
In her statement, Governor Mills said: “I considered this bill carefully, and while I have concerns about the impacts of gambling on public health, I believe that this new form of gambling should be regulated.
“I am confident that Maine’s Gambling Control Unit will develop responsible rules and standards to hold providers of this new form of gambling accountable while ensuring that Maine’s tribes benefit from its operations.”
The bill, LD 1164, originally passed by both the state’s House and Senate in June 2025, grants the state’s four federally-recognised Tribes–the Houlton Band of Maliseet Indians, the Mi’kmaq Nation, the Passamaquoddy Tribe and the Penobscot Nation–the right to partner with one third-party operator each.
It also establishes an 18 percent tax rate on online casino revenue.
Alliances
Maine first legalised online sports betting for Tribal operators in 2022, with the market officially launching on November 3, 2023. This means the tribes already have established relationships with major third-party operators.
The Passamaquoddy Tribe has existing gambling partnerships with DraftKings; while the Penobscot Nation, Mi’kmaq Nation and Houlton Band of Maliseet Indians have commercial agreements with Caesars Sportsbook.
It is expected that these alliances will now extend to online casino gaming alliances.
To date, no formal timeline for the market’s launch has been announced.
According to fiscal notes included with the bill, the first year of legal online casino gaming is expected to generate some US$1.8 million (£1.34m) in tax revenue for the state, rising to US$3.6 million (£2.68m) as the market develops.
While these figures are considered conservative compared to other iGaming states, they reflect Maine’s small population – just 1.4 million people inhabit the rugged, breath-takingly beautiful north eastern territory abutting Canada.
Furthermore, only a limited number of gambling operators are being permitted.
Historic Move
Maine’s Native American gaming Tribes have celebrated the expansion of the legal gambling market with understandable enthusiasm.
“Governor Mills’ support marks [a key] economic turning point for the Passamaquoddy people and for all Wabanaki Nations,” Chief William Nicholas Sr. of the Passamaquoddy Tribe at Indian Township affirmed today.
Chief Kirk of the Penobscot Nation added that the revenue from legalising online casinos: “Will fund essential governmental services for our people like health, education, housing, law enforcement, social services, environmental management, pay for improvements in tribal infrastructure, fund cultural and youth programs, and promote tribal self-sufficiency and economic development.”
Chief Clarissa Sabattis of the Houlton Band of Maliseet Indians highlighted the wider impacts, noting the legislation would generate tens of millions of dollars for the state.
“[It will create] opportunities to improve socioeconomic factors that impact not only our tribal citizens but citizens throughout Aroostook County and Maine,” said Sabattis.
But not everybody is happy.
In the weeks before Governor Mills signed the bill, the Maine Gambling Control Board voiced its opposition, arguing that excluding the state’s two land-based casinos from the legislation was a mistake that could result in hundreds of lost jobs.
Meantime, iCasino momentum is also building in New York State, Virginia, Ohio, Massachusetts and Illinois. All are on the cusp of considering online casino expansion.
Yet, because of fears of cannibalisation from well-entrenched land-based casino powerbrokers, observers believe it will be a long and tough battle to win over sceptics.
Indicatively, while 39 U.S. states have legalised sports betting only eight jurisdictions, including newly-minted Maine, have embraced online casino and full iGaming.
