Maine ignites retail and online sports betting

Sports betting in Maine will soon become a reality after state Governor Janet Mills signed legislation authorizing the vertical into law.

Bill LD 585 and its house bill predecessor HP 428 were passed by both chambers of the Maine legislature and include provisions to allow online and retail sportsbook operations.

Under the terms of the bill, the state’s three federally recognized tribes are eligible for a mobile sports betting licence, with those tribes able to build their own sportsbook on a B2B basis or via a B2C agreement with an online operator.

In addition to the online licenses, there are 10 retail licenses available to casinos, horseracing tracks, and off-track betting facilities in the state.

Licenses for both retail and online sportsbooks run for a maximum term of four years, with mobile licenses costing $200,000 and retail licenses coming in at a far cheaper price of just $4,000.

Operator sportsbook revenue will be taxed at a rate of 10%, however the tax itself is not levied on gross revenue and allows operators to make deductions including promotional expenses. Federal excise take payments from the total amount taxable.

In respect of a potential launch date, legislation signed into law in Maine comes into force within 90 days of the end of the respective session in which it is considered, potentially opening the door for sportsbooks to go live before the start of the next NFL season.

LD 585 aims to restore tribal sovereignty rights stripped from them by legislation limiting tribal rights passed in 1980.

Following a successful committee stage, amendments were introduced into the legislation authorizing a revision to Maine’s tax laws to give casinos, off-track betting facilities, federally recognized tribes, and certain commercial tracks the power to conduct sports betting.

Early stages of this amendment barred the Hollywood Casino in Bangor from operating sports betting, however subsequent debates led to this being overturned, a factor which paved the way for the successful passage through both chambers and finally to Mills’ signature.

Mills had previously opposed the legalization and expansion of igaming and sports betting in Maine back in 2020 on the grounds she was “unconvinced” whether Maine residents would support such a bill.

However, in a statement following her signature on the legislation, Mills reversed her position, highlighting the opportunities for the tribes.

“This law provides meaningful economic opportunities for the Wabanaki Nations. It incentivizes investment in tribal communities, and it formalizes a collaboration process on policy that sets the foundation for a stronger relationship in the future,” she said.

“I am proud of the work that the Wabanaki Nations and the state put into drafting this legislation, and I am grateful for the honest effort, the extensive research, and the hundreds of hours of negotiations and discussions which bore fruit in this bill.

“We will continue to work closely with the tribes to make progress for the Wabanaki people,” concluded Governor Mills.