Minnesota Racino Expands Federal Lawsuit

Running Aces racino in Columbus, MN expanded its federal lawsuit from three to five casinos, alleging the casinos illegally offered unauthorized games, giving them “illegal and unfair competitive advantages.”

Minnesota Racino Expands Federal Lawsuit

The federal lawsuit filed by Running Aces Casino, Hotel & Racetrack in Columbus, Minnesota alleging high-level executives at three Minnesota casinos illegally offered unauthorized games, has been expanded to include two more casinos.

The original lawsuit named executives at Grand Casino Hinckley and Grand Casino Mille Lacs, owned by the Mille Lacs Band of Ojibwe, and Treasure Island Resort and Casino, owned by the Prairie Island Indian Community. The amended lawsuit targets executives at Mystic Lake and Little Six casinos, owned by the Shakopee Mdewakanton Sioux Community.

The lawsuit, filed April 16 under the federal Racketeer Influenced and Corrupt Organization (RICO) Act, claims the five casinos have multiple “illegal and unfair competitive advantages” over Running Aces by offering games that are not authorized under state gaming compacts.

Minnesota’s tribal gaming compact says both the state and its tribes agreed to limit casinos to video games of chance, like slot machines, and blackjack. However, Running Aces said Grand Casino and Treasure Island have offered unauthorized Class III card games; the amended complaint stated Mystic Lake and Little Six have been offering Class II video slots and other video games of chance, which Running Aces claimed are not allowed under state law.

Running Aces’ lawsuit said the casinos have been continuously violating state criminal law which “categorically prohibits such gaming, as the tribes well know.” The claimant wants the court to stop the casinos from offering unauthorized games, and award damages to Running Aces from the executives.

In a statement about the amended lawsuit, Taro Ito, president and chief executive officer at Running Aces, said, “All that we have ever sought was to be treated fairly, compete on a level playing field, take advantage of improvements within the parimutuel environment and operate without fear of being eliminated. It is our sincere desire to have our day in court and let the facts determine the outcome.”

In response, the Shakopee Mdewakanton Sioux Community said in its own statement, “Running Aces’ lawsuit has no merit. All gaming conducted at Mystic Lake and Little Six Casinos complies with tribal law, federal law, and the gaming compact that was executed in 1989. Winning in court is not Running Aces’ real purpose in filing this case. It is a desperate stunt to attack the good reputation of tribes and tribal gaming. This lawsuit is intended to mislead the public and influence the final stages of the Minnesota Legislature’s 2024 session.”

Previously, officials at Running Aces and Canterbury Park have expressed frustration at being excluded from providing input about bills that would legalize sports betting in Minnesota. Earlier this month, the Minnesota Racing Commission approved 500 historical horse racing machines for the racetracks, but lawmakers could reject the move.

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