Maine bill proposes exclusive mobile gaming rights for Wabanaki tribes

Maine lawmakers are looking at a new bill that would give the state’s four Wabanaki tribes the exclusive right to run mobile casino gaming. If it passes, it could open up a fresh source of income for the tribes, who’ve faced economic challenges for a considerable time.

In late March, the state legislature introduced Legislative Document 1164, called “An Act To Create Economic Opportunity for the Wabanaki Nations Through Internet Gaming.” It’s aimed at four federally recognized tribes in Maine, the Wabanaki Nations, and is designed to help improve their economic opportunities through online gaming.

House Bill 1164 was reintroduced to the Veterans and Legal Affairs Committee by Rep. Ambureen Rana, a Democrat from Bangor. The bill would legalize iGaming in Maine and give the Wabanaki tribes exclusive rights to run it.

In her support for the bill, Rana stated: “Because the Wabanaki Nations have not enjoyed anywhere near the level of economic growth as that of other tribes in this country, they face an ongoing economic crisis.”

Maine bill to give gaming rights to Wabanaki tribes

The bill states: “Only a federally recognized Indian nation, tribe or band in this State is eligible to obtain a license and operate Internet gaming. The licensing structure follows the law governing sports wagering.”

If the bill passes, it would allow the tribes to enter into agreements with the state to get licensed for mobile gaming services. Any money made from these services would be taxed at 16%. The move builds on the 2022 law that legalized online sports betting in Maine, which gave the Wabanaki tribes exclusive rights to run online sportsbooks through partnerships with big names like Caesars Entertainment and DraftKings.

Unlike tribes in other states, Maine’s tribes don’t have full sovereignty over their reservation lands, due to the Maine Indian Land Claims Settlement Act, which means they aren’t allowed to operate physical casinos.

Tribal leaders from across Maine have voiced strong support for the bill. They’ve submitted written testimony pointing out both the economic benefits and the need for consumer protections in what’s currently an unregulated market. During a March 31 hearing, Chief Pos Bassett of the Passamaquoddy Tribe at Sipayik spoke in favor of the bill, saying it would help move money from illegal gambling into legal, regulated tribal operations, raising tribal revenues in the process.

In a statement, Bassett said: “You might never get the support you need because the operator is some shadowy offshore company, probably run by organized crime that could care less about Mainers.

“Instead of the state of Maine generating tax revenue from this activity, these companies that are located offshore operate a lot of like the states casinos. They just ship money from Maine to out of state coffers.

“This is already happening on peoples phones. Why not use the existing activity to benefit state and tribal governments?”

FanDuel warns against exclusivity

As with other states exploring exclusive gaming rights, not everyone’s on board with the idea. Some private operators are pushing back against the tribal exclusivity laid out in the bill. Michael Ventre, a senior manager for state government relations at FanDuel, testified that while FanDuel supports the idea of legal internet gaming in Maine, they’re not on board with limiting licenses strictly to the tribes.

Ventre stated: “We wanted to caution the committee on moving forward with this bill, though, because we are concerned that it will not create the healthy, regulated market that we have seen in many other states.

“The lack of legitimate choice for the consumer can encourage individuals to seek alternative methods outside of the regulated marketplace.”

However, the two companies already operating in Maine, DraftKings and Caesars Entertainment, have voiced their support for the bill.

Steve Silver, Maine Gambling Control Board chairman, has also voiced his opposition. Silver raised concerns during testimony that giving the tribes exclusive rights to mobile gaming could potentially lead to job losses at the state’s privately operated casinos.

He said: “Oxford and Hollywood Casinos employ nearly 1,000 Mainers. Legalizing iGaming without permitting Oxford and Hollywood to participate will lead to job cuts. I am willing to bet on it.”

Featured image: Canva

The post Maine bill proposes exclusive mobile gaming rights for Wabanaki tribes appeared first on ReadWrite.