Maine’s Internet Gambling Bill Sees New Life with Revised Tax Proposal
Maine’s journey towards legalizing internet gambling has taken a significant step forward as lawmakers revisit the proposal with notable amendments
The Joint Standing Committee on Veterans and Legal Affairs recently cast a pivotal 7-1 vote in favor of amending LD1777, setting the stage for a potential overhaul in the state’s approach to iGaming regulation and taxation.
A Shift in Taxation Strategy
In a notable departure from the initial 10% tax rate on iGaming operators partnering with tribes, the revised proposal suggests a 16% tax rate. This change aims to align more closely with the evolving landscape of internet gambling, ensuring a fair and competitive market while addressing stakeholder concerns.
State Rep. Laura D. Supica, the architect behind the 2023 bill, emphasized that the legislative journey for LD1777 is far from over, with ample room for further modifications as discussions progress. The proposed increase in the iGaming tax rate, now higher than the 10% levied on sports betting operators like Caesars Sportsbook and DraftKings Sportsbook, reflects a strategic recalibration in response to the unique dynamics of internet gambling.
Balancing Interests Between Tribes and Commercial Casinos
One of the more contentious aspects of LD1777 revolves around the exclusivity of iGaming licenses to tribal entities, sparking debate among stakeholders. Critics argue that the state’s commercial casinos—Hollywood Casino Hotel and Raceway Bangor and Oxford Casino Hotel, owned by Churchill Downs Incorporated—should also have the opportunity to secure operator licenses.
Rep. Supica’s vision for the bill includes the possibility for commercial casinos to collaborate with tribes, thereby extending their gaming offerings through tribal platforms. This collaborative framework is still subject to negotiation, underscoring the bill’s fluid nature as it weaves its way through the legislative process.
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