Maine Online Sports Betting Stalls in 2021, Hopeful for 2022
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Legalizing online sports betting in Maine has been a long, rugged battle. Despite getting close and seemingly making progress numerous times, Maine will not legalize online sports betting in 2021.
In 2020, Governor Janet Mills vetoed a sports betting bill, in short, because she did not feel the state was ready to promote gambling while supporting youthful gamblers. She believed it would be best to closely track the activity of other states and learn from their legalization efforts.
As a result, that sentiment left the door open for persistent legislators.
In 2021, sports betting bill LD1352 provided optimism before ultimately failing. The Bill was passed by the House and Senate before eventually stalling and being left on the Appropriations Table for 2021. Unfortunately for hopeful Mainers, the state legislature adjourned before acting on the bill, pushing any impactful decision on sports betting to early 2022.
Bill LD1352 notably included a tethering requirement, meaning any online sportsbooks looking to enter the state would need to partner with in-state casinos. Opponents of the tethering requirement, including the bill’s sponsor Louis Luchini, argue that tethering creates an anti-competitive environment. Luchini believes operators should be able to enter the market and compete for a share just as the casinos do.
Tethering is such a hot-button topic because the casinos, who would benefit the most from this requirement, have massive financial and political influence in The Pine Tree State. It’s also worth noting retail sportsbooks would be required to pay a 10 percent tax compared to 16 percent for mobile operators.
Although Maine has run into roadblocks the last several years, there is optimism that a Bill gets passed in 2022. When the legislative session begins after the New Year, legislators will resume debates about tethering, tax rates, and entry to market.
Assuming a Bill makes it through the state Congress and the Appropriations Table, Governor Janet Mills, who has already vetoed one bill, will need to approve it. While there is no guarantee the Governor does so, there is optimism that 2022 will be the year online sports betting is legalized in Maine.
If the tethering requirement holds when sports betting is legalized, expect Barstool Sportsbook to be a major player. Penn National Gaming, who acquired a 37 percent stake in Barstool Sports in 2020, owns Hollywood Slots Hotel & Raceway in Bangor, Maine. Partnering with a sportsbook that it already has a stake in would be a no-brainer.
As Maine awaits the next legislative session in 2022, New Hampshire continues to service impatient Mainers. Some legislators, who support online sports betting legalization in Maine, point out the fact that the state’s residents can cross the border into New Hampshire and place a wager if they’d like.
Aside from Barstool, DraftKings would likely make an effort to enter the Maine market, tethering clause or not. New England has been slow to legalize online sports betting relative to other regions of the country, and DraftKings is currently the only available operator in neighboring New Hampshire.
Regardless of the outcome, 2022 figures to be another fascinating year for Maine’s online sports betting fate.
Written by Nick Makowitz, our US Sports Betting Industry expert. You can learn more about our author's expertise here.
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