House members failed to garner a two-thirds majority to override the governor’s veto.
The final vote was 85-57 or nine votes shy of the required majority.
Democrats control the Lower House by a wide margin and enough members stuck with the governor.
Last week the Senate voted to override the veto by a single vote margin.
Governor Mills penned a letter explaining her decision to veto the bill last month.
Mills wrote: “Before Maine joins the frenzy of states hungry to attract this market, I believe we need to examine the issue more clearly; better understand the evolving experiences of other states; and thoughtfully determine the best approach for Maine.”
The bill planned to impose a 10% tax for sports betting at casinos, off-track betting facilities and harness racing tracks.
The legislation proposed a 16% tax on mobile wagering.
Maine is home to two casinos: Hollywood Casino Hotel & Raceway Bangor and Oxford Casino Hotel.
New Hampshire and Rhode Island stand to capitalize as the only two states in New England to offer sports wagering.
