The Gambling Laws at Maine A Full Guide

The Legal Gambling Status in Maine

The cornerstone of the state's gambling spectrum is the venerable Maine State Lottery, a longstanding choice that has captivated residents and visitors alike for several decades. Complementing this, two land-based casinos stand as bastions of entertainment, offering an array of casino games.

Pari-mutuel wagering on horse racing, a legal pursuit since 1935, historically dominated the gambling arena until the 1970s. Currently, two racetracks and six off-track betting locations grace the state, providing enthusiasts with a variety of options. The flexibility extends to equestrian betting via the internet, showcasing the adaptability of Maine's gambling options.

In the realm of online gambling, the legal framework embraces sports wagering and horse race betting, both regulated and endorsed. However, online casinos occupy a legal gray area, with the absence of state-approved platforms and the Maine State Lottery abstaining from online games. Nevertheless, Maine residents can explore reputable offshore online casinos, finding avenues beyond the state's explicit legal boundaries.

The charitable facet of gambling, known as benevolent gambling, flourishes in Maine, particularly through a network of bingo halls. Daily Fantasy Sports (DFS) carve a legitimate niche in the online betting landscape, offering enthusiasts an engaging and legal avenue for participation.

Legal Gambling Forms in Maine

Anchored by the enduring Maine State Lottery and complemented by two land-based casinos offering various games, including slots and table games, the state provides a rich and multifaceted gambling experience. Pari-mutuel wagering on horse racing has been a regulated pursuit since 1935, showcasing Maine's early embrace of regulated forms of betting. Charitable gambling, specifically bingo organized for fundraising, reflects the state's commitment to fairness and philanthropy. The inclusion of Daily Fantasy Sports (DFS) adds a contemporary, skill-based dimension to legal gambling. As the online gambling landscape evolves, current options include paid-entry DFS contests, with the recent legalization of sports wagering in 2023 extending the range of legal gambling forms and granting exclusive online sports betting rights to Native American tribes, further diversifying Maine's gambling offerings.

Gambling in Maine – Licensing, Tax and Fees

In Maine, the licensing process for commercial gaming involves meticulous scrutiny by the Gambling Control Board. For operators engaged in slot machines, casino facilities, and associated equipment, a comprehensive business entity application must be submitted. A slot machine operator license necessitates a non-refundable application fee of $200,000, with an annual renewal fee of $75,000. Similarly, a casino operator license, applicable to those operating facilities with both slots and table games, commands an application fee of $225,000, alongside an $80,000 annual renewal fee. Furthermore, casino operators must pay an initial gaming table fee of $100,000 per table, valid for 20 years, coupled with a $1,000 annual renewal fee per gaming table.

Suppliers, encompassing slot machine distributors, table game distributors, and gambling services vendors, are subject to the same rigorous licensing procedure. A slot machine distributor license demands a nonrefundable fee of $200,000, with a $75,000 annual renewal fee. Table games distributors, on the other hand, face a $5,000 nonrefundable license fee and a $1,000 annual renewal fee. Gambling services vendors must procure a license with a $2,000 nonrefundable fee, renewable annually for the same amount.

Taxation in commercial gaming is delineated by a nuanced approach. The tax rate for net table game income stands at 16 percent. Casinos with racetracks, exemplified by Hollywood Casino, are taxed at 39 percent of net slot income, while those without a racetrack, like Oxford Casino, face a 46 percent tax on net slot income. An additional 1% of gross slot machine income contributes to the General Fund for administrative expenses. Prizes and credits redeemed as a result of promotional credits are considered gross slot machine income. Moreover, a withholding tax of five percent applies to gambling winnings exceeding $5,000. This comprehensive framework ensures that commercial gaming operations in Maine adhere to stringent regulations, contributing to both the state's revenue and responsible gambling practices.