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Maine Opens Door to Tribal Internet Gaming Key Points
Maine will soon offer licenses for internet gaming, with a focus on creating economic opportunities for the Wabanaki Nations and other federally recognized tribes in the state. More than a year after the Legislature introduced a comprehensive bill establishing a regulatory framework, Gov. Janet Mills is allowing the legislation to become state law. The new law will set out detailed requirements for licensing, operations, security and revenue allocation, while emphasizing responsible gaming and the prevention of illegal activity. Licensing Structure and EligibilityThe act authorizes only federally recognized Indian nations, tribes, or bands in Maine to operate internet gaming, subject to licensure by the Maine Gambling Control Unit within the Department of Public Safety. Each eligible tribe may hold one internet gaming license (as an operator), which can be transferred to a business entity with a principal place of business in Maine that is wholly owned by that same federally recognized Indian nation, tribe or band. The licensing process mirrors that of mobile sports wagering in Maine, with additional categories for suppliers, management services, and occupational licenses for employees directly involved in gaming operations. A management service licensee may contract with an Indian nation, tribe, or band to manage internet gaming operations on behalf of the operator. An operator may not contract with more than one management services licensee. Supplier licenses allow the licensees to sell or lease internet gaming equipment, systems or services to operators in the state, and all internet gaming equipment must be tested and approved by an independent testing laboratory approved by the Director. Licenses are valid for one year, with options for temporary licensure during the application process. Fees are set at $50,000 for operators and $10,000 for suppliers and management services, with occupational licenses requiring a $250 application fee and modest renewal fees. The Director of the Gambling Control Unit may charge a processing fee for initial or renewed licenses for processing the application and performing any background investigations. Operational Requirements and OversightThe Director is empowered to regulate all aspects of internet gaming, including:
Operators must maintain records of all wagers, including personally identifiable information, wager details and instances of abnormal activity, for at least three years. These records are subject to inspection and must be shared with law enforcement and integrity-monitoring entities as needed, with strict confidentiality requirements. Responsible Gaming and Consumer ProtectionThe law will mandate robust responsible gaming measures, including:
Additionally, the act introduces a mechanism for intercepting internet gaming winnings to pay outstanding child support debt, supported by a secure registry maintained by the Department of Health and Human Services. Licensees are required to withhold and transmit winnings as directed, with procedures for administrative hearings and confidentiality protections. Compliance and EnforcementStrict eligibility criteria and background checks are required for all license applicants and key personnel, including criminal history record checks and financial responsibility assessments. Grounds for denial or administrative sanctions include false statements, undisclosed control interests, prior license revocations, lack of good moral character, criminal convictions, and financial insolvency. Unlicensed or unauthorized internet gaming activity is subject to criminal and civil penalties under Maine law, and licensees found in violation of the act may face suspension, revocation, fines, or other sanctions. Revenue Allocation and Economic ImpactAn 18% tax is imposed on adjusted gross internet gaming receipts, with funds allocated as follows:
This structure is designed to support public health, safety and welfare initiatives while providing a sustainable revenue stream for tribal operators. What’s NextMaine’s new internet gaming law represents a significant step toward economic empowerment for Maine tribes, while establishing a regulatory environment for internet gaming to ensure integrity, consumer protection, and responsible gaming. The law also represents an expansion of internet gaming in the United States, which is notable as the recent growth of legalized and regulated internet gaming in the United States has paled in comparison to the growth of sports betting. Management service providers, suppliers and other stakeholders in the internet gaming sector should review the requirements and opportunities to work with the Maine tribes as the state moves to implement their new iGaming framework. The Maine Gambling Control Unit will be responsible for developing regulations governing internet gaming in the state, and the law will take effect 90 days following the adjournment of the recent legislative session, which recently ended on Jan. 10, 2026. If you have any questions about this alert, please contact C.J. Fisher at 609.572.2209 or [email protected], Ryan Fader at 609.348.3479 or [email protected] or any member of Fox Rothschild's national Gaming Department. |