Maine’s planned online casino market is facing legal risk after Churchill Downs filed a lawsuit challenging the state’s licensing model.
The operator argues that granting exclusive iGaming rights to federally recognised tribes constitutes unconstitutional race-based discrimination, potentially blocking or delaying the market before launch.
The dispute centres on how Maine has structured iGaming. State legislation treats online casino gaming as a commercial activity, not as an extension of tribal gaming compacts.
Churchill Downs argues that, under this framework, limiting licences solely to tribes violates equal protection laws. If the court agrees, Maine may be forced to amend the legislation or pause implementation.
The lawsuit was analysed on a recent episode of iGaming Daily, hosted by Charlie Horner with outgoing SBC Media Managing Editor, Jessica Welman. Welman described the action as a strategic move rather than a shift in Churchill Downs’ long-held opposition to iGaming.
According to Welman, the operator’s priority is protecting its existing footprint in Maine. Churchill Downs owns Oxford Casino, and the lawsuit aims to ensure that if the state proceeds with online casinos, commercial operators are not excluded.
The filing frames the legislation as creating a “race and geography based monopoly” that harms in-state businesses that have already invested in the market.
Horner highlighted the direct language used in the complaint, which argues that race-based preferences in iGaming licensing cause measurable commercial harm and distort competition.
The tone of the lawsuit suggests Churchill Downs is prepared to escalate the issue if lawmakers or regulators do not revisit the framework.
The discussion also addressed the apparent contradiction in Churchill Downs’ position. The group remains a founding member of a national coalition opposing iGaming, largely due to concerns that online casinos cannibalise retail and racing revenue.
However, in states where iGaming appears inevitable, its strategy has been to seek participation through partnerships rather than launching its own standalone product. Welman pointed to previous skin-style arrangements with operators such as FanDuel as a preferred model.
Listen to the latest episode of iGaming Daily wherever you get your podcasts, as well as on SBC Event’s YouTube Channel.
