Churchill Downs is suing the director of the Maine Gambling Control Unit over legislation that legalized online casinos for the state’s four recognized tribes.
The lawsuit, filed last week in the District Court of Maine, names Executive Director Milt Champion as the sole defendant over the passage of LD 1164. The regulator and Gov. Janet Mills both opposed the bill last year, but Mills allowed the legislation to pass without signature earlier this month.
Churchill Downs is one of two non-tribal gaming operators in the state along with Penn Entertainment. The owner of Oxford Casino said the legislature “blessed a race-based monopoly” for online casinos in the state.
“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 complaint says. ” … 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 details potential losses
The complaint cites a study detailing revenue losses associated with the legalization of online casinos. The February 2025 report was conducted by The Innovation Group and commissioned by the National Association Against iGaming.
The study estimates that while Maine could benefit from increased tax revenue, the state could also lose 378 retail casino jobs or roughly $22 million in lost labor income and nearly $60 million in lost GDP. It estimates online casino legalization would create just 11 jobs.
Maine’s retail casino revenue grew 36.3% from 2019 through 2024. The six states with online casinos during the same period averaged a 4.3% revenue decline.
The study estimates Maine’s retail casinos would lose almost $69 million in 2029 with the addition of online casinos.
The NAAiG also said it would push for a People’s Veto, a process that would invalidate the bill.
Details for Maine online casinos
Online casino revenues will be taxed at 18% and could open new opportunities for online gaming companies.
The state’s four tribes are partnered with either Caesars or DraftKings for online sports betting, but the online casinos could be run by new partners. Rush Street Interactive management noted at a recent investor conference that it would like to operate in the state.
Maine’s fiscal analysis suggests $1.8 million in tax dollars for the first year and $3.6 million the next, but some analysts have called that projection conservative with Barry Jonas of Truist estimating Maine online casino revenue could hit $120 million in 2030.
