Maine's High-Stakes Gamble on Online Casinos Ignites Fierce Debate

AUGUSTA, ME – January 15, 2026 – In a stunning reversal that has reshaped Maine’s gambling landscape, Governor Janet Mills has allowed a bill to become law legalizing online slots and casino games, triggering a firestorm of criticism from public health advocates and anti-gambling organizations. The move, which Mills allowed to pass without her signature after months of deliberation, grants the state’s four federally recognized Wabanaki Nations exclusive rights to operate online casinos, a decision hailed by tribal leaders as a landmark step toward economic sovereignty.

However, the decision was immediately condemned by opponents who accuse the governor of prioritizing potential profits over public welfare. The Campaign for Fairer Gambling issued a scathing statement, calling the reversal inexplicable and dangerous. “I thought that we had reached the point where there was a consensus that the US expansion of online gambling has been a disaster,” said founder Derek Webb. “Janet Mills has proven that as Governor she has failed to protect the people of Maine with integrity.”

A Controversial Reversal

Governor Mills’ decision marks a significant departure from her administration's long-held skepticism toward gambling expansion. Her office had previously testified against the bill, LD 1164, in March 2025, and Mills herself has a history of opposing such measures, including vetoing a tribal casino bill in 2021. This history made her ultimate acquiescence all the more surprising to both supporters and detractors.

In a statement explaining her rationale, Mills cited extensive discussions with the chiefs of the Wabanaki Nations. She framed her decision as a commitment to providing “life-changing revenue for Tribal communities” and a form of economic self-determination. The governor expressed confidence in the state’s Gambling Control Unit to provide the necessary oversight to mitigate potential harms, drawing parallels to the regulatory framework already in place for online sports betting.

Critics, however, were not convinced, viewing the move as a political concession rather than a principled policy shift. The National Association Against iGaming (NAAIG) labeled it a “political calculation,” suggesting the governor abandoned her prior concerns under pressure. This U-turn has opened a rift, pitting the promise of tribal economic empowerment against dire warnings of a looming public health crisis fueled by what many experts call the most addictive form of gambling.

The Stakes: Economic Sovereignty vs. Social Cost

The new law is built on a foundation of tribal exclusivity, a model intended to rectify past inequities and provide a dedicated revenue stream for the Wabanaki Nations. Proponents, led by tribal leaders, argue that LD 1164 is not about introducing a new vice but about regulating and taxing an existing one. Chief William Nicholas Sr. of the Passamaquoddy Tribe has repeatedly stated that Mainers are already gambling on illegal offshore sites, with all profits leaving the state.

“A legal and regulated route could provide tens to hundreds of millions of dollars per year in tax revenue that should benefit Mainers, rather than shadowy offshore companies,” one tribal advocate argued. Under the law, the state will levy an 18% tax on adjusted gross revenue. These funds are earmarked for a wide array of state programs, including a 2% allocation for gambling addiction services, as well as funds for opioid treatment, emergency housing, veterans' homes, and school renovations.

Opponents counter that these projected revenues will be dwarfed by the social costs. They point to the highly immersive and accessible nature of online slots, available 24/7 on any mobile device. Since Maine launched online sports betting in November 2023, the number of residents placing themselves on the self-exclusion list for gambling has skyrocketed by 275%, from 133 in 2022 to 498 by the end of 2025. The Maine Council on Problem Gambling estimates that nearly 24,000 adults in the state already have a gambling problem, creating an estimated $20 million in social costs from related bankruptcy, crime, and job loss—all before the introduction of online casinos. Critics note that for every person with a gambling disorder, eight to ten others are negatively affected.

Reshaping Maine's Gambling Landscape

LD 1164 will profoundly alter Maine’s economic and regulatory environment. The law permits the Wabanaki Nations to partner with established commercial operators, similar to the agreements for sports betting where tribes partnered with industry giants like Caesars and DraftKings. This framework effectively cuts out Maine's two existing brick-and-mortar casinos, Hollywood Casino in Bangor and Oxford Casino.

Both establishments, along with local business groups like the Oxford Hills Chamber of Commerce, fiercely opposed the bill. They project that the introduction of iGaming could slash their revenues by 25% or more, potentially leading to the loss of up to $67 million annually and the elimination of as many as 400 jobs. The state’s own Gambling Control Board voiced concerns, estimating that Oxford Casino alone could lose approximately 120 jobs as patrons shift from in-person to online play.

The debate over market impact comes as the state is still analyzing the effects of its nascent online sports betting market, which generated over $43 million in gross revenue and $5 million in taxes for the state in 2024. Proponents of LD 1164 argue the regulatory infrastructure is already in place, but health officials, including the Maine Center for Disease Control and Prevention, have warned against rapid expansion, noting that “internet gambling is a format that can be isolating, and isolation is a risk factor for poor health outcomes.”

Lessons from Other States

Maine joins a growing list of states, including Michigan, Pennsylvania, and New Jersey, that have embraced online casinos, offering a glimpse into the potential benefits and pitfalls. The economic success stories are compelling. In 2024, Michigan’s gambling taxes contributed half a billion dollars to the state, with online gambling accounting for 80% of that total, funding K-12 schools and addiction services. Similarly, Pennsylvania generated over $2.6 billion in gambling tax revenue in 2024, while New Jersey has collected over $1 billion in taxes from iGaming since its inception.

However, these revenues come with a significant social price tag. Michigan saw a sharp increase in calls to its problem gambling helpline and was forced to double its compulsive gambling budget to $8 million. In New Jersey, a 2023 study found that 6% of adults exhibited signs of a gambling disorder, a rate three times the national average. A separate economic analysis commissioned by the Campaign for Fairer Gambling concluded that New Jersey’s online gambling market may have decreased the state's overall economic activity by $180 million in one year and could generate social costs of up to $350 million—an amount that could effectively cancel out its tax gains. As Maine moves forward, it faces the critical challenge of balancing the promise of new revenue against the well-documented risk of creating widespread social harm.