Maine Online Casino Bill Signed Into Law

The Maine Legislature’s return to Augusta has already produced a major outcome for the state’s gambling industry. Gov. Janet Mills has officially signed LD 1164 into law, clearing the way for legalized online casinos in Maine and setting off a broader shift in how the state regulates betting.

The signing ends months of uncertainty after lawmakers passed the bill last June and adjourned without final action from the governor.

With her approval, Maine becomes one of the few US states to authorize online casino gaming — and the first to do so under an exclusively tribal framework.

Online Casinos Approved Under Tribal-Exclusive Model

LD 1164 legalizes online casino gaming while granting exclusive operating rights to Maine’s four federally recognized tribes. Each tribe will be permitted to offer online casino games through partnerships with commercial operators, mirroring the structure already in place for online sports betting.

Under that model, three tribes currently partner with Caesars Sportsbook, while one works with DraftKings. The new law extends that approach beyond sports betting to include online slots, table games, and other casino-style offerings.

State lawmakers backing the bill argued that the framework respects tribal sovereignty while creating a tightly regulated market. A legislative fiscal analysis projects approximately $1.8 million in state tax revenue during the first year, based on an 18% tax rate on online casino revenue.

Industry and Regulatory Opposition Remains

Despite the bill’s passage into law, opposition remains strong among regulators and commercial casino operators.

The Maine Gambling Control Unit and the Maine Gambling Control Board both testified against LD 1164, citing concerns over problem gambling risks and potential economic harm. The Gambling Control Board previously warned that online casino expansion could result in up to 200 job losses at the state’s two land-based casinos.

Commercial operators have also criticized the tribal-only structure, arguing that excluding brick-and-mortar casinos could reduce overall tax revenue and place existing facilities at a competitive disadvantage.

Credit Card Sports Betting Ban Advances Separately

While online casinos now have the governor’s signature, lawmakers continue to move forward with additional gambling reforms.

House Bill 2080, sponsored by Rep. Marc Malon, would ban sportsbooks from accepting wagers funded by credit cards. The proposal also places restrictions on digital wallets unless operators can verify that accounts were not loaded using credit.

Approved gambling payment methods would include debit cards, bank transfers, cash, and prepaid cards not purchased with credit. Regulators would be tasked with enforcing safeguards and refund protections for prohibited transactions.

The measure aligns Maine sports betting with a growing national push to limit gambling on borrowed money as mobile betting expands.

Sweepstakes Casinos Face Possible Ban

Lawmakers are also preparing to crack down on online sweepstakes casinos that use dual-currency systems allowing virtual coins to be redeemed for cash prizes.

Maine regulators issued warnings in 2024 stating that no sweepstakes or online casino platforms are licensed in the state. A separate bill scheduled for early hearings would turn those warnings into enforceable law, following similar actions taken recently in states like New York and Connecticut.

Maine Enters a New Era of Gambling Regulation

Since launching online sports betting in 2023, Maine has generated nearly $10 million in tax revenue, and the approval of online casinos marks the state’s most significant gambling expansion yet.

With online casinos now legalized, tighter payment rules under consideration, and sweepstakes platforms facing elimination, Maine is positioning itself as a closely watched test case for how states balance expansion, regulation, and consumer protection.

The coming months will determine how quickly online casinos launch — and how aggressively Maine enforces its evolving gambling framework.