Washington Tribes win this change in sports betting lawsuit. Here’s how
A lawsuit challenging Washington Tribes’ exclusivity on certain types of gaming, including recently-legal sports betting, will move from the U.S. District Court for the District of Columbia to the Western District of Washington, a federal judge decided Thursday, April 28.
Maverick Gaming — a gaming and entertainment company headquartered in Kirkland, Wash. — filed the lawsuit earlier this year. They allege 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, opposed the lawsuit and applauded the case’s move to Washington state.
“Maverick Gaming’s lawsuit seeks to invalidate all Tribal gaming compacts in Washington state and undermine the carefully crafted, limited and successful system of gaming we have developed here over three decades. Their plans would cause irreparable harm locally, not just to historically marginalized Tribal communities but also to the general public,” Washington Indian Gaming Association Executive Director Rebecca Geroge said in a news release.
Maverick Gaming CEO and Co-Founder Eric Persson reiterated the company’s belief the Tribes’ exclusivity on gaming constitutes a monopoly and violates the Indian Gaming Regulatory Act in a Friday afternoon, April 29, statement provided via email.
“While we disagree with today’s decision by a D.C. District Court Judge to relocate our litigation to the Western District of Washington, we have always believed that the final decision on this issue will most likely be settled by the United States Supreme Court. We look forward to continuing our litigation in the Western District of Washington and believe that the defendants’ decision to pursue a different venue instead of confronting the merits of our litigation only underscores the strength of our position,” he said. “An inclusive and regulated marketplace for sports betting will generate tax revenue for public services, create great family-wage jobs across our state and reduce the ongoing illicit marketplace that poses a substantial public safety risk with no guardrails to protect against problem gambling.”
In a January news release regarding the case, Persson said they support and respect Tribal equality and sovereignty.
“The Indian Gaming Regulatory Act was intended to guarantee parity between Tribal and non-Tribal gaming, but unfortunately Washington State is misusing (the Indian Gaming Regulatory 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 January news release.
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. They are hopeful the court will reject Maverick’s attempt to remove the state of Washington and elected officials as defendants in the case.
“We are confident that the federal courts here will reject this blatant and destructive legal attack on Tribal self-reliance. Indian gaming under (the Indian Gaming Regulatory Act) supports Tribes’ sovereignty and self-reliance by ensuring Tribes have the ability to conduct carefully regulated gaming activities, producing a revenue stream they can use to fund critically important services for their members and their communities,” George said.
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 and one Tribe has been tentatively 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. According to the Washington Indian Gaming Association, Tribes have contributed more than $3 million per year to support responsible gambling education, prevention, treatment and wellness programs and provide casino self-exclusions and ban requests.
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.
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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. It intends 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.
This story was originally published April 29, 2022 at 3:08 PM.
