Minnesota casino, racetrack, and hotel Running Aces has recently amended its federal lawsuit and added Mystic Lake and Little Six Casinos, owned by the Shakopee Mdewakanton Sioux Community. Running Aces has accused tribal casinos of offering unauthorized video games of chance in violation of federal and state laws. 

Running Aces Alleges Illegal Advantage in Tribal Casinos’ Gaming Activities

Running Aces filed the amended complaint on May 14 expanding the scope of the initial lawsuit against Grand Casino Hinckley, Grand Casino Mille Lacs, and Treasure Island Resort & Casino. According to the legal action, Running Aces alleges that the casinos along with the newly added Mystic Lake and Little Six have an illegal and unfair advantage because they are hosting unauthorized gaming activities, reported the Star Tribune.

Taro Ito, the CEO and President of Running Aces, underlined the gravity of the situation by saying: “For decades, tribal casinos and certain politicians have been falsely perpetuating that they are entitled to an exclusive right on gaming in the State of Minnesota, including electronic video games of chance. To the contrary, under the Indian Gaming Regulatory Act of 1988 (IGRA), which is a federal law, such an exclusive right is in fact prohibited.”

He further added that the current legal regulations in the state of Minnesota specifically prohibit the playing of electronic video games of chance for any person.

Running Aces Seeks Monetary Compensation in Heightened Legal Battle

The legal battle has become even more intense as Running Aces is not only looking for a court injunction but has also filed for unspecified monetary damages that the company is seeking from the executives of the targeted tribal casinos.

According to the filed lawsuit, through their offerings of Class II video slots and other video games, the respondents have violated both state compact agreements and Minnesota criminal law.

The Shakopee Mdewakanton Sioux Community responded to the lawsuit by defending the legality of its gaming operations. The tribal operator denounced Running Aces’ claims as baseless. It also accused the horse racing track of tarnishing the reputation of tribal gaming. 

The Shakopee Mdewakanton Sioux Community confirmed that all gaming offerings at Mystic Lake and Little Six Casinos comply with tribal, federal, and state laws.

This legal clash comes on the backdrop of a broader debate in Minnesota’s legislature over the expansion of gambling, which is focused mainly on sports betting and Historical Horse Racing (HHR). As part of the debate, tracks like Running Aces and Canterbury Park have expressed concerns that they are being sidelined in legislative discussions.

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The first state where Supremeland Gaming will be able to operate its products is Pennsylvania, with the Keystone State’s Control Board issuing an interim authorization that will allow the supplier to roll out its content portfolio with interested and licensed operators.

Supremeland Secures Coveted Pennsylvania Market Entry

Supremeland Gaming is a Swedish iGaming studio and developer which is only getting started, with the company creating four vivid and standout games, Munition Mine, Red Panda Rising, Wild Quad Squad, and Die Pinata Die, with the developer planning on more spectacular releases in the months to come.

Although an upstart studio, the company already has created unique experiences. The company reunites two development arms under its banner, to name Powderkeg Studios, which has developed all of the four current releases, and a new project that is still a work in progress.

Powderkeg Studios is specifically based in New York, allowing Supremeland Gaming to rapidly expand its portfolio in the coveted market. The company specifically signed an agreement with EveryMatrix and the latter’s SlotMatrix platform to ensure that once cleared to roll out in iGaming America, Supremeland would have a trusted and ready partner locally.

Company Planning New Development Arm Launch

Commenting on the opportunity, Supremeland Gaming CEO Rickard Öhrn had this to say about exploring the company’s achievements and future opportunities in the market:

“We are thrilled to have obtained our first approval in the United States, and we couldn’t be more excited to introduce our titles to the American igaming community. This is a momentous occasion for Supremeland, and we are eager to contribute to the vibrant gaming culture in Pennsylvania and beyond.”

Earlier this year the company hired new teammates as it sought to strengthen its development and operational capabilities, bringing new senior mathematicians and technical artists on board.

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A businessman from Kent was accused of running illegal gambling operations in Florida. The man, who had allegedly operated an illegal slot machine business, has now pleaded not guilty to the charges.

The defendant, Timothy Surgen, is a 57-year-old man who, according to multiple charges, leveraged his company, Surgen Enterprises, to operate slot machines. His alleged violations have been outlined in over a hundred charges, claiming that he offered slots at the Black Beards Super Game Room, Games N More and Treasure Island Arcade properties.

For reference, Florida’s laws prohibit slot machines that pay out cash.

In addition to possessing slot machines and running illegal gambling operations, Surgen faces charges for money laundering.

Plaintiffs Allege Surgen Operated Illegal Gambling and Laundered Money

Surgen Enterprises was founded in Ohio in 2012. The company launched in Florida in 2018, where its owner filed it as a foreign limited liability company based of out Ohio.

In 2019, Surgen applied for a new business application, allowing him to establish Treasure Island Arcade, one of the venues where he offered illegal slots. The venue was officially listed as an arcade business offering 50 machines and overseen by three employees.

Games N More, one of the other venues in question, was launched in 2022 and was listed as a 20-machine arcade with four employees. Black Beards Super Game Room was founded that same year and was listed as an arcade with 25 machines and four employees. These two properties were notably founded by a former Surgen employee.

Between November 2022 and September 2023, investigators probed into Games N More and Treasure Island Arcade. Undercover agents spotted armed guards and learned that the venues offered multiple cash slots. To confirm that the machines were illegal, the agents tried to exchange cashout tickets for money and gift cards – a practice forbidden in Florida.

Surgen, who has now pleaded not guilty to running illegal gambling operations, is believed to have generated more than $304,000 of illegal money.

Surgen faces further charges.

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A regulatory authority in Hungary, scrutinizing the operations of gambling activities, announced it imposed a financial penalty against an unnamed individual over organizing illegal games of chance. On Thursday, the Supervisory Authority for Regulated Activities (SZTFH), confirmed it imposed a hefty fine against a private individual that was found organizing a real estate lottery.

The person, whose name wasn’t revealed, faced a HUF 30 million ($87,000) financial penalty. The Supervisory Authority explained that it remains committed to investigating any attempts for illegal or unlicensed gambling. It said that such crimes can be punished with fines that range between HUF 500,000 to HUF 100 million for the organizers.

“The Supervisory Authority for Regulated Activities recently imposed a HUF 30 million fine on a private individual for organizing a real estate lottery as an unlicensed game of chance,“

reads a statement released by the Supervisory Authority for Regulated Activities

At the same time, the SZTFH said that unlicensed gambling is subject to criminal prosecution. Organizers of such events can face a penalty of up to three years in prison, along with fines. Similarly, the Authority safeguards consumers from illegal gambling advertisements. If such advertisements are found, the person involved in the ad, the publisher, as well as the advertising service provider may be subject to fines.

“In unlicensed gambling, the player participates at his own risk, the Authority does not have the authority to enforce the handing over of prizes, and the enforceability of claims in court is also doubtful,“

added the Supervisory Authority

Increased Interest in Lotteries Is Observed

According to the Supervisory Authority, recently, an increase in the interest in different real-estate and high-value items lotteries was observed. It said that in some cases, notaries were involved. However, the Authority reminded, that even if a notary is involved, this doesn’t mean that such raffles or lotteries are legal.

Citing the existing regulations, the Authority said that raffles or lotteries are defined as games of change where a player can win cash or another prize with monetary value in exchange for money. Given that such games rely on chance, this makes them a regulated activity. In other words, businesses, organizations or associations cannot offer legal games of chance without the proper licensing and authorization, reminded the SZTFH.

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