Maine Legislature Divided Over Tribal Exclusivity

A recent vote on giving tribal exclusivity for internet casinos went down to defeat by a small margin in Maine. Supporters thought the tribes deserved this. Opponents worried about the fate of commercial casinos and jobs.

Maine Legislature Divided Over Tribal Exclusivity

In a close vote on April 9, the Maine House of Representatives voted down a bill that would have provided the Wabanaki Nation exclusivity to offer online casino.

The final vote of 71-74 included nine Democrats who joined almost every Republican. Despite losing, the bill was moved to the Senate, where it also failed before being tabled April 10.

If approved, the law would follow prior exclusivity granted to online sports wagers and an expected $100 million windfall for the tribes over five years.

Bill opponents complained that the legislation cuts out existing casino owners, as well as triggering the loss of jobs in the gaming halls. Others worried about an increase in addiction.

“As much as I want to play online poker, this isn’t the way to do it,” Representative David Boyer told the Press Herald. “I’m concerned with the jobs that are at stake in Oxford and Bangor (at the casinos). The tax rates are not comparable. The brick-and-mortar casinos have a very high tax rate.”

However, Representative Aaron Dana, who represents the Passamaquoddy Tribe at Pleasant Point, said the proposal would not just be a boon to the tribes, but to surrounding municipalities and the state as the new revenue would be pumped back into the local economy not to out of state corporations.

“We would be spending all of that money here in the state of Maine, because we are also state of Maine citizens,” Dana said. “This economic empowerment will not only strengthen tribal sovereignty, but also enhance the overall (well) being of tribal members.”

Maine’s Wabanaki Nation includes:

  • Mi’kmaq Nation
  • Houlton Band of Maliseet Indians
  • Passamaquoddy Tribe
  • Penobscot Nation

Maine’s retail casinos are:

  • Hollywood Casino Hotel and Raceway, Bangor
  • Oxford Casino Hotel, owned by Churchill Downs Incorporated

Bill sponsor, Representative Karen Supica, whose district includes Hollywood Casino and Hotel, called on lawmakers to support the bill because it specifically benefits tribes.

“Much of the concern comes from the fact that it is exclusively for the tribes,” she said. “But for me that is why I wholeheartedly support it, because this is a wonderful opportunity for the state of Maine to begin to make some corrections to how they have enacted past gaming laws.”

Opponents argued that exclusivity seemed unfair to non-tribal businesses.

Steve Silver, chairman of the Maine Gambling Control Board, told Bonus his opposition stemmed from leaving out the two casinos, which generated $70 million for the state last year and employs hundreds.

The bill calls for a 16 percent tax rate that could produce $3.8 million a year in tax revenue. It would take effect in about a year.

Allocation of tax revenue:

  • 2 percent Gambling Control Unit (GCU) Administration Expenses
  • 3 percent Gambling Addiction Prevention and Treatment Fund
  • 3 percent Emergency 911 Fund
  • 3 percent Opioid Use Disorder Prevention and Treatment Fund
  • 2 percent Emergency Housing Relief Fund
  • 3 percent Maine Veterans’ Homes Stabilization Fund

Maine’s legislative session is set to adjourn April 17.

**GGBNews.com is part of the Clarion Events Group of companies (Clarion). We take your privacy seriously. By registering for this newsletter we wish to use your information on the basis of our legitimate interests to keep in contact with you about other relevant events, products and services which may be of interest to you. We will only ever use the information we collect or receive about you in accordance with our Privacy Policy. You may manage your preferences or unsubscribe at any time using the link in our emails.