In what many industry insiders consider a surprising twist, Maine Governor Janet Mills has allowed the iGaming bill, LD 1164, that has been sitting on her desk to become law.
Maine Rolls the Dice
Governor Janet Mills had several dozen bills awaiting her attention since the last legislature adjourned, and now was the time when she would either veto those bills or allow them to become law. One of those pieces of legislation had become a hot-button topic in the gaming industry: online casino gambling in the Pine Tree State.
The governor had shared her opinion last summer and said she supported the anti-iGaming stance taken by the Department of Health and Human Services, the Maine Gambling Control Unit, the Gambling Control Board, the National Association Against iGaming (NAAiG), as well as the land-based casino operators.
However, she did want to give the bill the consideration as she felt it deserved and decided to mull it over until this new session convened. And despite her previous leanings, Mills has decided to allow the bill to become law, which will tax iGaming platforms at 18% of their profits.
J.P. Morgan analyst Daniel Politzer believes Maine’s iGaming industry could generate up to $200 million per year, while Truist Security analyst Barry Jonas had a more conservative idea in mind, projecting $55 million in revenue in its inaugural year of 2027 and increasing to $120 million in 2030.
Tribal Nations in Control
Governor Mills has stated that a conversation with the state’s gaming tribes convinced her that allowing the iGaming bill to become law was the right decision.
“This fall, I met with the five elected Chiefs of the Wabanaki Nations, who each spoke passionately about the importance of this bill in offering life-changing revenue for Tribal communities, as well as providing a form of economic sovereignty for their Nations,” said Governor Mills.
“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, and 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,” she added.
Three of the four gaming tribes run mobile sports betting through Caesars Entertainment, while the Passamaquoddy Tribe uses DraftKings as their platform. When iGaming launches, which many believe will happen no later than early 2027, these partnerships are likely to persist.
iGaming Concerns
Maine will become the eighth state in the nation to welcome iGaming, but it has been shunned by many other states, including those that have launched mobile sports betting. Online casino gambling is viewed as more addictive; having a 24-hour casino at one’s fingertips can be too tempting for some who are vulnerable to problem gambling.
Moreover, brick-and-mortar casinos argue that iGaming will steal foot traffic from their gleaming, glittery, land-based casinos that often cost hundreds of millions, if not billions, to construct. It’s all a bit much for legislators to combat, which is why iGaming’s growth hasn’t been nearly as rapid as mobile sports betting.
Potential Domino Effect?
However, Maine’s approval could pave the way for other states considering similar legislation. Deutsche Bank analyst Steven Pizzella believes it could provide the momentum needed to allow lawmakers in other markets to take a fresh look at iGaming.
“Overall, we believe the digital stocks should react positively to this news, as we have an incremental legalized iCasino state that we believe few were expecting. In addition, while it might be tough to get incremental iCasino legalization post-Maine, we believe a key aspect of this is it allows investors to envision a potential domino effect, believing other states legalize, especially in the Northeast region,” wrote Pizzella.
