Washington Tribes face sports betting, gaming challenge in new lawsuit
Maverick Gaming — a gaming and entertainment company headquartered in Kirkland, Wash. — is suing in federal court, challenging Washington Tribes’ exclusivity on certain types of gaming, including sports betting, which recently became legal through state compacts with Tribes.
The lawsuit, filed in the U.S. District Court for the District of Columbia, alleges an application of the Indian Gaming Regulatory Act is being used inappropriately to give Washington Tribes a monopoly on types of gaming, not allowing them for use in non-Tribal gaming properties in the state. Sports betting, roulette and craps are held exclusively by Tribes.
The Washington Indian Gaming Association, a non-profit Indian gaming trade association representing the 29 federally recognized Tribes in the state, says they will review the lawsuit more carefully, but confirms the Tribes stand united in opposing the lawsuit.
“We support and respect tribal equality and sovereignty,” said CEO and co-founder of Maverick Gaming Eric Persson in a news release. “... I am hopeful that this lawsuit will resolve successfully so that tribal casinos and smaller commercial cardrooms like those owned by Maverick Gaming may offer the same types of legal gaming, such as sports betting, just like commercial cardrooms and tribal casinos already offer in other states.”
“The Indian Gaming Regulatory Act was intended to guarantee parity between tribal and non-tribal gaming, but unfortunately Washington State is misusing (the act) to instead create tribal monopolies on certain types of gaming, such as sports betting. Contrary to (the act’s) own words, the law is being used to insulate tribes in Washington State from competition that exists in many other states with legal gaming marketplaces,” said Theodore Olson, a partner at Gibson Dunn representing Maverick Gaming, in a news release.
In November, the D.C. court ruled that a Tribal compact between the state of Florida and the Seminole Tribe was unconstitutional because it violated the Indian Gaming Regulatory Act. The Tribes’ recent attempts to appeal were denied, halting sports gambling in Florida and closing the Tribe’s sportsbook.
The Washington Indian Gaming Association says their compacts are in compliance with the federal Indian Gaming Regulatory Act, state law and have been repeatedly vetted at multiple levels of regulatory oversight.
“Maverick Gaming’s newly announced federal lawsuit is a desperate attempt to overturn federal law, the will of the Washington State legislature, state and federal agency decisions, and the clearly expressed sentiments of the general public in Washington State. It would severely undermine the well regulated and safe system of limited gaming that has been established in Washington State over three decades of carefully negotiated compacts between the State of Washington and Native American tribes,” said Rebecca George, executive director of the Washington Indian Gaming Association, in a news release.
All 29 federally recognized Tribes in the state of Washington have a Class III gaming compact, with 22 tribes operating 29 gaming facilities in the state. Sixteen Tribes have been approved to include sports wagering in their gaming compacts since Gov. Jay Inslee authorized sports wagering at Tribal casinos in March 2020.
The Snoqualmie Tribe opened the state’s first sportsbook and took its first bet in September 2021. In December, BetMGM launched the largest sportsbook in the Pacific Northwest at the Puyallup Tribe’s Emerald Queen Casino.
In 2017, the Washington state Indian economy yielded more than $5.3 billion in gross state product and provided 37,000 jobs, with 70% of employees being non-Tribal members, according to the association. Combined, Tribes are one of the state’s top 10 employers.
Tribal governments rely on gaming for essential government services allowing for self-sufficiency. Gaming pays for Tribal housing, healthcare, natural resources, education, infrastructure investments and charitable donations both on and off reservations.
“In short, this dangerous and destructive lawsuit is without merit, and were it to somehow be successful it would cause irreparable harm not only to historically marginalized tribal communities but also to the broader public, which opposes a massive expansion of gambling in their neighborhoods and communities,” George said.
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Natasha Brennan covers Washington state tribes’ impact on our local communities, environment and politics, as well as traditions, culture and equity issues, for McClatchy media companies in Bellingham, Olympia, Tacoma and Tri-Cities.
She joins us in partnership with Report for America, which pays a portion of reporters’ salaries. You can help support this reporting at bellinghamherald.com/donate. Donations are tax-deductible through Journalism Funding Partners.
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Maverick Gaming operates 19 of Washington state’s 44 licensed cardrooms, with 2,000 employees. They intend to invest $500 million in licensed cardrooms and planned entertainment developments across the state, according to a news release. The company also operates the Wendover Nugget, Red Garter Hotel, Red Lion Casino and Gold Country Casino in Nevada, and three properties in Colorado.
“We are proud of our union-led workforce in Washington that offers family-wage jobs with benefits and a pension, helping create access to economic opportunity in communities across my home state. That access to economic opportunity relies on a fair application of laws such as the Indian Gaming Regulatory Act,” Marverick’s Persson said.
This story was originally published January 11, 2022 at 3:18 PM.
