Maine Gambling Control Unit chairman says igaming bill may have reduced tax revenue for casinos

Monday, April 29, 2024 1:49 PM
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  • Mia Doyle, Special to CDC Gaming

After the state’s igaming bill failed in the House of Representatives, Maine Gambling Control Unit Chairman Steve Silver told the press that passing the bill might have resulted in a reduction in tax revenue and job losses for the state’s two casinos, Oxford Casino and Hollywood Casino.

LD1777, introduced by State Rep. Laura Supica in 2023, would have given the Wabanaki Nations tribe exclusive access to online casino operator licenses in Maine, but it died between houses on April 17. A week earlier, the bill failed by three votes in the House of Representatives.

“In 2022, the casinos generated $68.2 million in tax revenue through slots and table games,” Silver said. “The casinos also generated about $2 million in sales, hotel, beverage and meal taxes. Yet, as it is currently written, LD 1777 will lead to dramatic cuts in that tax revenue with no plan for replacing the revenue lost by the recipients of that revenue.”

The other reason Silver cited was its potential for problem gambling. LB1777 required 1 percent of gross igaming receipts to go to the Gambling Addiction Prevention and Treatment Fund.

“Since mobile sports betting launched in Maine in November, calls to the state helpline have jumped dramatically. For example, in January 2024, Maine had 71 calls for help – an increase of 133 percent from January 2023. Putting a blackjack or roulette table in everyone’s pockets will only exacerbate the problem,” Silver said.

Mia Doyle is a news writer for Major League Content, covering the latest stories across the casino and sports betting industry. Mia’s specialties include US gambling business, casino technology, and legislation news. Mia also likes to write about responsible gambling and social responsibility.