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 Tri-Cities region is on the brink of a significant development as the Confederated Tribes of the Colville Reservation move forward with plans for the area’s inaugural tribal casino. With the project now entering a pivotal phase of federal approval, new insights into its scope and potential impacts are emerging.

BIA to Host Virtual Meeting on Environmental Impact of the Project

Scheduled for April 24, the Bureau of Indian Affairs (BIA) is set to host a virtual public meeting to gather feedback on what should be encompassed in the Environmental Impact Statement (EIS) for the proposed casino, reported local media outlet the Tri-City Herald. The EIS, as mandated by federal law for certain projects, aims to assess the environmental repercussions of the endeavor.

The ambitious plan outlined by the Colville Tribe encompasses the construction of a sprawling 184,200-square-foot casino, a 200-room hotel, an event center, dining establishments, and ancillary facilities. Situated on 165 acres of Colville-owned land off Highway 395 and Kartchner Street, north of the King City Truck Stop, the project aims to invigorate the area’s economic landscape.

Central to the endeavor is the “Fee-to-Trust” process, which facilitates the development of enterprises like casinos, hotels, and restaurants on non-reservation sites under the Indian Gaming Regulatory Act of 1988. The BIA is overseeing the intricate process of placing the designated land into federal trust, paving the way for the casino’s realization.

Yakama Nation Opposes Colville Tribe’s Casino Plan in Tri-Cities

While the prospect of economic revitalization is promising, the project has not been without its detractors. Among them, the Confederated Tribes and Bands of the Yakama Nation have voiced objections, citing territorial disputes rooted in an 1855 treaty. The Yakama assert that the Colville’s plans encroach upon their ceded territory, particularly in the Tri-Cities area.

In response, the Colville Tribe contends that Pasco holds historical significance for several of its constituent tribes, such as the Palus, and asserts that any territorial concerns will be addressed through the rigorous federal review process.

The proposed casino site, flanking North Capitol Avenue near the Kartchner exit and north of the AutoZone warehouse, symbolizes the Colville Tribe’s aspirations for economic growth and community development.

Despite the absence of tribal operations in close proximity, private casinos dot the landscape of the Tri-Cities. Notable among them is the Wildhorse Casino and Resort near Pendleton, Ore., operated by the Confederated Tribes of the Umatilla Reservation, and Legends Casino & Hotel in Toppenish, operated by the Yakama.

As the Tri-Cities eagerly anticipates the potential economic and cultural implications of the proposed tribal casino, stakeholders and community members alike are encouraged to participate in the forthcoming public engagement opportunities to shape the trajectory of this transformative endeavor.

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Efforts by the Coquille Indian Tribe to create a new casino along South Pacific Highway in Medford face opposition from four Tribal Nations based in Northern California and Oregon. The Karuk, Cow Creek, Elk Valley, and Tolowa Dee-ni’ Tribes have united against the Coquille Tribe’s project, drafting a letter to Department of the Interior (DOI) Secretary Deb Haaland.

A New Casino Could Disrupt the Existing Balance

At the heart of the issue is the Coquille Tribe’s plan to place 2.4 acres of land into trusts through the DOI for the casino project. While this process typically only applies to land near a tribe’s reservation, the proposed site is 150 miles beyond the Coquille Tribe’s reservation. In contrast, the Karuk Tribe’s service area is within 50 miles of the location.

In a letter to DOI Secretary Deb Haaland, four neighboring tribal nations urged her to visit them before issuing an exception to the Indian Gaming Regulatory Act for the Coquille Tribe. Speaking for local news outlet KMTR, chair of the Karuk Tribe, Buster Attebery, expressed concerns about the lack of consultation with local tribes regarding the project’s potential economic impacts.

The economic consequences could be huge. It would devastate our ability to provide healthcare, public safety, social services.

Buster Attebery, Karuk Tribe chair 

Attebery emphasized the importance of consulting tribes with ancestral ties to the region, highlighting their millennia of best practices. The four nations opposing the project fear such a high-profile venue could create unnecessary competition and impact their revenue streams. Many tribes rely on their gaming businesses to ensure an adequate standard of living for their members, so Coquille’s project could be considered a hostile action.

The Coquille Tribe’s Efforts Span Several Years

Responding to the rising controversy, Coquille tribal chair Brenda Meade defended the project, citing the Coquille Restoration Act of 1989, authorizing the tribe to take land into trust for economic development within a designated reservation restoration area, including Jackson County. Meade expressed disappointment in the opposition from other tribes, emphasizing the Coquille Tribe’s rights within the reservation restoration area defined by Congress.

It is heartbreaking to us that other tribes, including tribes in California, continue to attack our sovereignty and seek to limit our economic development rights.

Brenda Meade, Coquille tribal chair

The project for a Medford casino previously faced significant opposition from Oregon Gov. Tina Kotek, who expressed concerns that the venue would negatively impact all of Oregon’s tribes and lead to a proliferation of gambling. Despite Kotek’s stance, the final decision rests with DOI, which previously rejected the Coquille Tribe’s effort.

As the dispute continues, the fate of the Coquille Tribe’s casino project hangs in the balance, with opposing Tribal Nations advocating for their sovereignty and economic interests in the region. While the new project technically meets the legal requirements, its implications and long-term impact have sparked ongoing debates that could reshape Oregon’s gaming landscape.

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In a recent commentary, Assemblyman James Ramos emphasized the pivotal role of California’s Native American tribes in any potential expansion of sports betting within the state. 

Ramos Highlights Tribal Role in California Gaming Policy

Assemblyman James Ramos, a member of the San Manuel Band of Mission Indians, underscored the historic agreement between the state and tribes in 1999, which granted tribes exclusivity over casino gaming, confining such activities to tribal reservations.

Highlighting the significance of this agreement, Ramos stressed the need for a similar approach to be taken with sports wagering, emphasizing principles of responsibility, community benefit, and respect for past commitments, reported Cal Matters. 

Ramos urged policymakers not to perceive the issue solely as the legalization of sports betting but rather as a matter of aligning any gaming expansion with the values that have guided tribal gaming since its inception.

Ramos’s commentary comes amidst ongoing discussions surrounding the future of sports betting in California. Notably, tribes have played a decisive role in shaping the trajectory of such endeavors. In 2022, a coalition of influential tribes, including San Manuel, successfully defeated a ballot proposition supported by commercial sportsbook operators, thereby maintaining control over gaming activities within the state.

The assemblyman’s remarks serve as a reminder that any potential progression towards regulated sports wagering in California hinges on the consent and leadership of the tribes. Ramos emphasized the tribes’ steadfast commitment to protecting gaming revenues within California and maintaining responsible, community-oriented enterprise practices.

Ramos Foresees Challenges in California’s Sports Betting Journey

While Ramos refrained from making predictions regarding the timeline for potential sports betting approval, it is evident that the issue will not be on the ballot shortly. Recent polls have indicated limited public appetite for revisiting the topic, particularly following the setbacks of 2022.

Looking ahead, the 2026 midterm election remains a possibility for reconsidering sports betting legislation. However, factors such as a gubernatorial election could complicate the process, diverting attention and resources from gaming-related initiatives.

Furthermore, discussions surrounding the approval of mobile betting suggest a phased approach, with retail sportsbooks potentially preceding online platforms. This approach could necessitate travel to tribal casinos for sports betting enthusiasts, particularly those residing far from major population centers.

Notably, a sports betting initiative in California, spearheaded by Kasey Thompson of Eagle1 Acquisitions Corp. LLC, was withdrawn due to opposition from tribal groups and a lack of sufficient support. Thompson initially aimed to gather signatures for the initiative, but faced backlash from tribes, leading to its abandonment.

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In a significant move, the Department of the Interior has announced the finalization of federal rules affirming the legality of Florida-style “hub-and-spoke” tribal gaming compacts. These compacts, governed by the Indian Gaming and Regulatory Act, play a pivotal role in the economic development of Tribal nations and have been a focal point for negotiations between Tribes and states.

Updated Legislation Aims to Avoid Contentious Issues

The modifications to 25 C.F.R. Part 293, which governs the review and approval of Tribal-state gaming compacts, clarify the Department’s criteria when approving these compacts. This newest update aims to provide clear guidance on allowable negotiation topics between Tribes and states, eliminating ambiguity and streamlining the negotiation process.

Important terms related to gaming compacts have received better definitions, reducing potential areas of contention. The new regulations also explicitly outline when the Department must review a gaming compact, ensuring a more transparent and predictable review process. Assistant secretary for Indian affairs Bryan Newland remarked that the update upheld the government’s treaty and trust responsibilities to Tribal Nations.

A key part of that is our obligation to support Tribal Nations as they work to revitalize communities by opening businesses and creating jobs that strengthen their economic self-sufficiency.

Bryan Newland, assistant secretary for Indian affairs

These updated rules received extensive input from Tribal nations, with two listening sessions and seven formal consultation sessions held to gather insights and recommendations. Written comments from Tribes and the public further helped refine the new regulations, reflecting the Department’s commitment to collaboration and responsiveness to Tribal input.

Florida’s Troubles Proved the Need for Better Laws

The Department of the Interior’s drive to clarify tribal gambling regulations likely aims to avoid situations like Florida’s gaming compact between the Seminole Tribe and Gov. Ron DeSantis in Florida, which faced a prolonged legal battle. While the Seminole Tribe relaunched its Hard Rock Bets platform in 2023, the disruptions significantly hindered sports betting’s introduction to the Sunshine State.

West Flagler Associates, the party responsible for the lawsuit, openly questioned the Department of Interior, implying that the Seminole’s compact violated the law. The company’s latest legal maneuver was a writ of certiorari to the US Supreme Court, hoping to overturn the current verdict. If successful, the legal battle may extend into 2025, threatening the Seminole Tribe’s substantial investments.

With the new rules set to be effective 30 days after publication in the Federal Register, Tribal nations engaging in gaming compacts will benefit from increased clarity and certainty. The move aligns with broader initiatives under the Biden-Harris administration’s Investing in America agenda, which aims to deploy significant investments to help develop Tribal communities.

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Currently, Maine’s federally recognized tribes hold exclusive rights to sports betting. The state launched its legal betting market back in November last year, yet tribes continue their efforts toward the expansion of gambling in the state.

On Wednesday this week, Maine’s Veteran’s and Legal Affairs Committee, heard details regarding three bills that propose the expansion of gambling, permitting tribes to establish and operate casinos on their lands, as announced by the Portland Press Herald.

Rep. Ben Collings, a sponsor of one of the bills that was recently reviewed, spoke about the benefits of expanding gambling. “I believe this is a matter of basic fairness,” he outlined, pointing out that despite the tribe’s exclusive online sports betting rights, they need more funds to fund their communities.

Collings said that allowing the tribes to establish casinos can provide much-needed funding for their reservations and boost rural communities. “I think it’s time we step out of the way and end this discriminatory policy that we have and let tribes run their own businesses and do with that money what they see fit and also bring in much-needed revenue to the rural areas of Maine and to our state’s economy,” he explained.

Existing Casino Operators Voice Their Concerns

Despite the potential benefits of expanding gambling across Maine through federally recognized tribes, not everyone agrees with the proposals. The state’s two casinos are significantly concerned about the impact a statewide expansion may have on their business. Representatives of the casinos in Hollywood and Oxford voiced their concerns about the proposals, adding that there may not be such high demand for this many casinos across the state.

Dan Walker, an attorney representing Oxford Casino, explained that a statewide gambling expansion marks a significant step for Maine. “You combine it with what else we’ve been hearing, (and) what’s being brought forward to this committee this session is the biggest expansion of gaming in (Maine) history, taken all together,” he explained.

Chris Jackson, a Hollywood Casino representative, confirmed that the gambling sector is significantly competitive. He added that in a state like Maine, there are “very limited gaming dollars” which makes the competition fierce.

Still, supporters of the tribal gambling expansion continue to hope the proposals will gain further traction. So far, Gov. Janet Mills has opposed the state’s gambling expansion. However, in 2022, she did make an exception by approving a proposal that allowed the tribes to secure exclusive rights over online sports betting.

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The California Nations Indian Gaming Association (CNIGA) announced its unwavering opposition to two proposed sports wagering initiatives, marking a united front against what they deem as deceptive measures. 

CNIGA Chairman Raises Alarms Over Deceptive Sports Wagering Initiatives

CNIGA Chairman, James Siva, expressed concerns about the initiatives, highlighting their disingenuous nature. Chairman Siva stated during a press conference in Sacramento that the proponent of the measures was attempting to divide and conquer tribes by pushing an initiative that sought to legitimize illicit offshore operators and put their governments at risk.

The 52-member coalition, representing federally recognized tribal governments and associate members, is dedicated to preserving and protecting Indian gaming on federally recognized Indian lands. Their firm stand against the sports wagering initiatives stems from a commitment to safeguarding tribal sovereignty and integrity.

In a letter addressed to Eagle1 Acquisition Corp. executives Kasey Thompson, Reeve Collins, and petition signer Ryan Tyler Walz, CNIGA, along with 28 individual tribes, urged the proponents to withdraw their initiatives immediately. The letter emphasized the strong opposition from more than half of California tribal nations, condemning the proposals as offensive and deceptive.

California Tribal Heavyweights Rally Against Latest Sports Betting Push

The sports betting initiatives, filed on October 27, face significant resistance from tribes, including some of the state’s largest casino operators such as the San Manuel, Pechanga, Graton Rancheria, Agua Caliente, Barona, and Rincon tribes. 

These tribal heavyweights, collectively spending over $220 million in 2022 to defeat a previous sports betting proposal, remain steadfast in their opposition to what they perceive as an attempt to hijack tribal goodwill for personal gain.

The CNIGA also voiced concerns about a plan to transfer offshore assets to tribes, characterizing it as a cynical and deceptive attempt to cleanse illegal offshore online gambling corporations with a track record of illicit activities. They pledged to launch an aggressive campaign against the initiatives, akin to their successful efforts in 2022, resulting in an 82% vote against a similar proposal.

Despite the proponents’ amendments to the initiative, removing language deemed problematic by some tribes, the CNIGA remains resolute in its opposition.

The tribal coalition firmly believes that 2024 is not the right time for sports betting in California, viewing it as a 2026 issue at the earliest. They underscored the importance of tribal sovereignty and the support it enjoys among California voters, reinforcing their commitment to defeating the proposed sports betting measures.

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Gambling compacts have been at the core of gambling operations in some jurisdictions around the United States, with New York not any different, and the Empire State also running revenue-sharing agreements with tribal gaming establishments.

Seneca Nation to Continue Running Gambling Business Operations

The Seneca Nation in Western New York has a compact with New York through December 9, 2023, which will now be temporarily renewed as confirmed by Gov. Kathy Hochul, with the revenue-sharing agreement extended through March 31, 2024. 

This agreement allows the Seneca Nation to continue running all of its three venues in the state, to wit Seneca Niagara Resort & Casino, Seneca Allegany Resort & Casino, and Seneca Buffalo Creek Casino.

The compact negotiation is important, because under the Indian Gaming Regulatory Act, federally-recognized tribes may operate Class I and Class I gaming, but Class III gaming, which features table games and gives casinos their fully-fleshed look, is subject to additional red tape.

Commpacts have proven to be a very successful negotiation tactic in many places already. Florida, for example, has been able to launch sports gambling, effectively going around the need to amend its State Constitution by establishing an agreement with the Seminole Tribe of Florida to run sports betting out of tribal land to wield the entire online gambling industry in the state.

This was interestingly interpreted to also include online betting platforms that can be hosted on sovereign tribal land, and that have faced severe legal challenges. Yet, most of these have been dismissed with the Seminole Tribe now looking as a shoo-in.

Yet, Seneca Nation has not won a definite extension, but just bought time to continue negotiating with the state, as the governor and tribal leaders are butting heads over the tax payable by the tribe. New York has been known as one of the keenest jurisdictions to collect tax revenue from local gambling companies and business owners.

Negotiating Exclusivity in Times of Fast Market Liberalization

The compact is an important win for the tribe nevertheless, as the Seneca Nation wants to retain its exclusivity of table and slot games west of State Route 14, which guarantees it a good influx of revenue and no real competition at least in its chosen geography.

New York is also benefiting as the state claws 25% of the tribe’s gross gaming revenue, which generates a windfall of roughly $100 million for the state every year.

This rate, though, is now the subject to debate, as the Seneca Nation has cited the changing realities of new commercial casinos that are being built closer to its territories and effectively drawing business away from the tribal properties. Seneca hopes to pay a little less than its current 25% rate to remain competitive.

This is a tough sell in a state that already charges sports betting businesses with 51% on their gross gaming revenue.

Gov Hochul was also the subject of some criticism as her husband, William Hochul, was until recently working for Delaware North, a competitor to Seneca Nation’s gambling businesses, which made the governor reluctant to weigh in, recusing herself at first.

Her husband has since quit his position at Delaware North, allowing the governor to weigh in without any speculation about the fairness of her opinion.

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Proponents of the California sports betting initiative have submitted crucial amendments to their proposal to the state attorney general. The revised initiative not only addresses concerns raised by tribes and regulators but also introduces key changes that promise to enhance revenue sharing and inclusivity among California’s diverse tribal communities.

California Sports Betting Initiative’s Key Transformations

One of the pivotal alterations includes an increase in the revenue share for limited- and non-gaming tribes, a move that aims to rectify the disparities among different tribal groups. The amended initiative eliminates provisions that larger tribes found problematic, fostering a more unified stance among stakeholders.

The original proposal faced criticism from three California Indian tribes in 2021, who highlighted concerns related to offshore online gaming operators. In response, the proponents removed the contentious provisions, demonstrating a commitment to addressing the specific needs and worries of the tribal leaders.

Key modifications in the finalized initiative involve a boost in the percentage of operator revenue allocated to Revenue Sharing Trust Fund (RSTF) tribes to 25%. This replaces the previous 10% allocation to homelessness and mental health funding. 

Additionally, the initiative now limits the in-person sign-up requirement for online sports betting accounts to the first two years, allowing mobile sign-ups within a 10-mile radius of tribal casinos.

The initiative also introduces a five-year sunset for promotional credits, starting at 15% in the first year and gradually decreasing to zero. Furthermore, the start date for California online sports betting has been pushed to no earlier than July 1, 2025.

CNIGA Firmly Rejects California Sports Betting Proposals

Last month, the California Nations Indian Gaming Association (CNIGA) formally opposed two sports betting proposals, introduced by Kasey Thompson and Reeve Collins in October, aiming to regulate online and in-person sports wagering in the state. Following a vote by 52 CNIGA members, the association expressed irrevocable opposition, criticizing the handling of the initiatives and emphasizing the Tribes’ expertise in deciding what is best for their communities, urging the proponents to drop the proposals as promised in case of tribal opposition.

The next steps for the California sports betting initiative involve the state producing a fiscal estimate by December 18 and the attorney general releasing a circulating title and summary by January 2. Proponents, confident in tribal support, are prepared to fund the initiative entirely, from signature collection through the potentially costly ballot campaign, reinforcing their commitment to a zero-cost initiative for the tribes.

The California sports betting initiative, if successful, would amend the state constitution to permit sports betting on professional, collegiate, and select amateur sports. Tribal compacts with the state would include sports betting, and the initiative will legalize craps and roulette at tribal casinos.

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Tribal gaming leaders in Oklahoma, alongside their national counterparts, have called upon Gov. Kevin Stitt to support tribal-led sports betting initiatives. 

Tribal Chiefs Express Concerns Over Las Vegas Sands’ Dallas Mavericks Deal

The call for action was made during a recent webcast titled “The New Normal,” hosted by Victor Rocha, conference chairman of the Indian Gaming Association, and Jason Giles, executive director of the Indian Gaming Association. 

Matthew Morgan, chairman of the Oklahoma Indian Gaming Association, was interviewed during the webcast, where concerns were raised regarding the recent acquisition of the Dallas Mavericks NBA team by Miriam Adelson, widow of casino magnate Sheldon Adelson, and the subsequent move by the Las Vegas Sands Corp.

Adelson’s family, known for controlling the Las Vegas Sands Corp., has committed to purchasing the majority stake in the Dallas Mavericks for a reported $3.5 billion. This move has sparked apprehension within tribal circles as the Adelsons have been actively lobbying to legalize gambling in Texas. Mark Cuban, the current owner of the Mavericks, envisions a new arena with an integrated casino in an entertainment district. 

According to the terms of the deal with Adelson, Mark Cuban, who took ownership of the Mavericks in 2000, will retain a stake in ownership and continue to oversee basketball operations.

Oklahoma Tribal Chiefs Skeptical of Stitt’s Sports Betting Tax Rates

Gov. Stitt, a member of the Cherokee Nation, recently proposed a sports betting plan for Oklahoma. However, tribal leaders assert that the proposal, which includes a 15% tax rate on retail sports betting at tribal casinos and a 20% tax on mobile licenses with a $500,000 license fee, caught them off guard and lacks feasibility. Despite Stitt’s efforts to diversify the state’s revenue streams, stakeholders remain skeptical.

Jason Giles pointed out the inexplicable tax rates proposed by Stitt, emphasizing the robustness of the Oklahoma gambling industry and its potential for growth. Giles argued for a more forward-thinking approach, urging the state to move beyond dependence on the fluctuating oil market and consider economic diversification.

Highlighting the regional competition from neighboring states like Kansas and Arkansas, as well as potential future entrants like Missouri and Texas, Giles stressed the need for strategic planning. 

Morgan echoed these sentiments, underlining the importance of Oklahoma becoming a pioneer in sports betting before other states capitalize on the opportunity. In response to the economic concerns raised by Giles, Morgan expressed optimism about the resilience of Oklahoma’s gaming industry. He emphasized ongoing investments by tribal nations in casino properties, citing recent openings and renovations across the state.

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