Since its launch in November 2023, the Maine sports betting scene has taken off rapidly, fueling the state’s economy with nearly half a billion dollars in bets and millions flowing into local tax revenue.
The Pine Tree State is buzzing with new job opportunities, bustling online sportsbooks, and a boost to local businesses — all thanks to the demand for legal sports betting.
Yet, as impressive as the numbers are, the swift growth of sports betting raises questions about its potential impact on Maine’s communities.
In this article, we’ll explore the effects of Maine’s sports betting industry, from its economic gains to the regulatory and social challenges shaping its future.
Is Sports Betting Legal in Maine?
Yes, Maine residents can legally bet on sports both online and offline. The legal betting age is 21 years or older, and you need to be physically located in the state to place wagers.
Online sports wagering officially launched on November 3, 2023 after Governor Janet Mills signed a bill into law in May 2022, with platforms like Caesars Sportsbook and DraftKings going live.
Each of the Wabanaki Nations — the Penobscot, Passamaquoddy, Micmac, and Maliseet tribes — can partner with one commercial sportsbook provider, allowing for a maximum of four online betting apps in Maine.
In-person sports betting is also allowed, and retail licenses are available for the state’s two casinos: Hollywood Slots Hotel & Raceway and Oxford Casino. Maine offers four additional retail licenses, allowing off-track betting facilities and other venues to apply.
No retail sportsbooks have been launched for a while, mainly due to regulatory hurdles and the time it takes to get everything set up properly. However, in September 2024, Caesars partnered with First Tracks Investments to bring retail sports gambling to Maine. It opened the first in-person sportsbook, Oddfellahs, in downtown Portland.
Tax Considerations for Sports Betting in Maine
Under the law, the tribes need to pay a 10% tax on gaming revenue and a $200,000 license renewal fee every four years, in addition to $40,000 paid by their commercial partners. The retail licenses cost $4,000 to renew every four years, a relatively low fee to balance the limited market size.
Individual players must also pay federal and state taxes. Maine requires a 7.15% state income tax on gambling winnings. Combined with the 24% federal withholding tax, a total of 31.15% may be withheld from gambling winnings to cover tax obligations.
History of Sports Betting in Maine
With the overturning of PASPA in 2018, states got the authority to legalize and regulate sports betting. However, sports betting in Maine took years of debate and legislative wrangling before it became a reality.
In 2019, the Maine Legislature passed a bill to legalize in-person and online sports betting. While the bill passed both chambers, it faced a surprising veto from Governor Janet Mills in June 2019, citing concerns about the impact on local communities and potential harms.
There were other attempts. In March 2020, a bill was introduced in the State Legislature that failed to pass before the end of the legislative session. In 2021, advocates tried again with LD 1352, a new sports betting bill. This time, it found a more favorable reception but failed to gain traction due to disagreements over who should control sports betting licenses.
The biggest breakthrough came in April 2022 when lawmakers passed LD 585, allowing for in-person and mobile sports betting, with exclusive rights given to Maine’s four Native American tribes: the Penobscot, Passamaquoddy, Micmac, and Maliseet. Governor Mills signed the bill into law on May 2, 2022.
The first Maine online sports betting sites, Caesars Sportsbook and DraftKings, officially went live in November 2023.
Current State of the Maine Sports Betting Industry
As of November 2024, two primary operators dominate the market: DraftKings and Caesars Sportsbook. Caesars partnered with three of Maine’s four tribes — the Maliseet, the Micmac, and the Penobscot — while DraftKings partnered with the Passamaquoddy Tribe to facilitate their operations within the state.
In the first months after the launch, Maine players showed huge interest in online sports betting, even topping an average handle of $1 million a day during its first month.
In December 2023, the total handle reached approximately $44.5 million, an 18.4% increase from the $37.5 million from the previous month. DraftKings accounted for $35.4 million, while the Caesars sports betting app added $9.1 million.
The steady and growing handle suggests a stable and engaged betting population. By February 2024, the handle experienced a slight decline to $33.6 million, down from $38.1 million in January. Despite the decrease, Maine collected approximately $425,500 in tax revenue for the month, reflecting the industry’s ongoing contribution to Maine’s economy.
To date, Maine has recorded a total of $446.5 million in handle. The numbers continue to grow, with September 2024 surpassing $51.3 million, thanks to football season. Maine also introduced Oddfellahs, its first retail betting operator, which reported $158,000 in wagers and $28,000 in revenue during the month.
Impact of Sports Betting in Maine
Since online sports betting in Maine was legalized, the state has seen both positive and negative effects.
On the positive side, Maine sportsbooks generate significant tax revenue. The state has earned nearly $4.9 million from Maine sports betting apps in the first year alone and benefits from licensing fees and taxes, in addition to job increases. This added revenue supports public services, healthcare, and education and helps reduce state budget deficits.
Sports betting has made Maine an attractive destination for fans and bettors, especially during major events like the Super Bowl. Visitors spend on accommodations, dining, and entertainment, supporting local businesses. Maine online gambling has also encouraged more consumer spending from residents, driving economic growth and benefiting communities.
Additionally, Maine legal sports betting has created new job positions across various sectors, from sportsbooks to technology and hospitality. This doesn’t just mean jobs directly in betting—it’s helping boost employment in restaurants, hotels, and shops as more people come to visit and spend.
However, the rapid rise of sports betting has also caused concerns about problem gambling. Experts note that online sports betting in Maine is considered one of the more addictive forms of gambling, and easier access could lead to an increase in addiction cases. This can contribute to financial challenges, including personal debt and bankruptcy for affected individuals.
The Future of Maine Online Sports Betting
Maine’s sports betting industry is expected to continue growing, with potential expansions in both online and retail sectors and regulations to create a safe and sustainable market.
After the successful launch of Oddfellahs in Portland, more retail sportsbook locations are expected to open across the state. Caesars Entertainment, for instance, has already expressed interest in collaborating on more in-person betting venues.
Currently, there are only two online sportsbooks in Maine. However, the legal framework allows for up to four Maine online betting platforms, suggesting that new operators may enter the market and offer more options to sports fans.
Over the last year, sports bettors have been increasingly active, with analysts reporting major handle figures. As the industry matures, experts expect continued growth in both participation and revenue, contributing positively to the state’s economy.
At the same time, ongoing discussions and legislative efforts aim to improve the regulatory environment for retail and online sports betting in Maine.
These efforts focus on ensuring responsible gambling practices, protecting consumers, and optimizing the state’s economic benefits.
Maine Sportsbooks Are Here to Stay!
Despite being late to the game, Maine’s sports betting scene has certainly made its presence felt. With close to $4.9 million in tax revenue flowing into public services, legal betting is making a positive impact on the state’s budget.
Big Maine sports betting sites like DraftKings and Caesars Sportsbook, along with new retail options, have teamed up with the state’s Native American tribes, adding a unique local connection to the betting experience.
Of course, while sports betting brings economic benefits and new opportunities, it also requires ongoing oversight to address problem gambling risks and protect the community’s well-being.
So, if you’re jumping into the betting action in Maine, enjoy the fun — but remember: play smart and keep it balanced!
