Maine Becomes 8th State to Legalize Online Casinos

Maine has beaten New York, Virginia, and Massachusetts to the punch, and it seems that Mainers will have legal online casinos by mid 2026. Governor Janet Mills announced that she will sign into law 52 of 61 bills that were introduced back in 2025, of which one is Maine’s online casino bill. The law will be implemented three months after the current legislative session ends, so 3 months after April 15.

While not one of the biggest markets in the US, Maine is adding momentum to the growing list of states considering legalizing online casinos. It won’t be the hot market that all big US casino brands will fight over, as the market will be small. And given that only the 4 recognized tribes in Maine will own the exclusive rights to online casinos, Mainers aren’t going to have a plethora of options. Nonetheless, this is an important milestone for the iGaming industry in North America, and it could suggest that the tide is finally turning for these gaming platforms.

Maine’s Online Casino Bills at a Glance

On January 8, Governor Janet Mills announced that LD 1164 can proceed and become law, authorizing the legalization of online casinos in Maine. This makes Maine the 8th state in the country to have legal online casinos, and comes at an important time when many other states are exploring similar casino models. Maine’s online casino bill gives the four tribal nations, the Passamaquoddy Tribe, Penobscot Nation, Houlton Band of Maliseet Indians, and Mi’kmaq Nation, the right to operate online casinos. Casino operators cannot apply for licensure without partnering with one of the local tribes, and, quite controversially, the 2 landbased commercial casinos in Maine don’t have the rights either without tethering to one of the tribes.

The legislative session will end on April 15, and the law will come into effect three months after. This means, by the middle of Jun 2026, Maine’s first online casinos should launch. The regulation allows for virtually all online casino games, including slots, blackjack, roulette, baccarat and other table games. Online poker and live dealer games are also expected to be announced. Operators will pay a pretty modest tax rate, at only 18%, which aligns with the Governor’s aim of giving the tribes an exclusive revenue stream to bolster their community.

The licensing framework will not open the doors to dozens of suitors. There can be a maximum of 4 online casinos in Maine, as there are only 4 tribes. But three of those are partnered with Caesars and the last with DraftKings, so this may be a two horse race. That wouldn’t be a great surprise, as the sports betting sector is exactly the same. Caesars Sportsbook and DraftKings Sportsbook are the only two books that are legally licensed in Maine.

Market Operators and What to Expect

Each tribe can partner with a single commercial operator, and iGaming brands cannot enter the market directly and host platforms without a tethered license. The iGaming tax, at 18%, is relatively low, allowing tribes to benefit from these contracts, and iGaming operators also stand to gain. While the competition will not be great, Maine is expected to roll out responsible gambling protocols, stable and consumer friendly legislation to help create a well balanced online gambling experience for players.

We only have 7 precedents for legal online casinos in the US, with 4 of those having greater markets and 3 having more confined sectors. Delaware and Connecticut have 3 and 2 legal online casinos, respectively, and in Rhode Island there is just 1 legal operator which is Bally Casino. If these states are anything to go by, Maine will most probably have a pretty safe gaming environment. But the promotional offers and games libraries may not be as comprehensive as more competitive markets like New Jersey or Pennsylvania, both of which have over 20 licensed online casinos.

Industry Concerns About the Bill

A recent survey indicated that the public is not happy with the proceedings. A poll conducted by the National Association Against iGaming suggested that 64% of Maine voters were against legalizing online casinos, and of those, 49% were strongly against the notion. Also, the Maine Control Board appealed to the Governor to veto the online casino bill, as it would create a virtual monopoly for the tribes, and exclude Maine’s existing commercial casinos, Hollywood Casino and Oxford Casino from entering.

Maine is one of the least populated states, and represents one of the smaller markets across the country. In 2024, the annual commercial casino gaming consumer spend was just over $218 million in the data charts across 38 states with iGaming/online sports betting or landbased gambling. The average across those states was around $1.89 billion. But small or not, Maine still represents the start of what could be a ripple effect across America, and the biggest sportsbook operators were quick to voice their disapproval of the tribal tied iGaming framework.

DraftKings and Caesars will be happy with the proceedings, but FanDuel, Fanatics and BetMGM submitted a joint testimony that argued the bill would not create a healthy market like in other states. Maine will most likely see DraftKings and Caesars snap up iGaming licenses quickly and prepare their online casinos for launch. BetMGM, FanDuel and Fanatics are probably going to attempt to enter the market through a tribal contract, but they don’t have the same head start as the other two.

Why the Sudden Interest in Online Casinos?

There are numerous reasons for the emerging interest in legalized online casinos, and now it seems like they are finally coming to fruition. The last time a state went through the regulatory hurdles to get the job done and legalize online casinos was back in 2023, when Rhode Island made the jump. Legalized online sports betting, on the other hand, has been spreading like wildfire across North America and with Missouri launching online sports betting back in December, it takes the tally up to 39 states.

Online casino legalization has taken longer, but now may just be the tipping point for most states. The majority have legal online sports betting, and already have the licensing frameworks, control boards, and tax schemes to support iGaming. Just look at Maine, practically mirroring its sports betting model for casino gaming. Another push is the revenue potential, which they can see from other states with iGaming and can more or less project from their legal sports betting models.

Banning Sweepstakes Legalizing Online Casinos

But one of the biggest trends we saw last year was America’s U-turn on sweepstakes casinos. These gambling platforms, that operated from a legal loophole, could serve players in states with no legal channels, and give them all the slots, blackjack, and table games they desired. State authorities, who lost revenue and also had no control over these gaming platforms, began issuing cease and desist orders, before taking the battle up a notch and banning sweepstakes outright. New York banned sweepstakes back in December, and the other big player was California, which not only banned sweepstakes, but also exposed the iGaming software provider Pragmatic Play, as operating without any permissions. Pragmatic Play left the US, in what was one of the biggest blows to sweepstakes casinos. They still operate, but more states are closing in on these platforms.

So going forward, yes, 2026 will most likely see a lot more states enter the discussions and introduce online casino bills. In states that are bigger than Maine, it takes more paperwork and time to process, but even if it takes up to a year, there is a good chance that 2026 will pave the way for more online casinos in the US from 2027 onwards.