Racing Aces, which operates a racetrack in Columbus, Minn., filed a federal racketeering lawsuit against Indian casinos that it claims are offering card games not authorized by state law, the Star-Tribune reported April 16.
The lawsuit names executives at the Grand Casinos in Hinckley and Mille Lacs, owned by the Mille Lacs Band of Ojibwe, and Treasure Island Resort & Casino, owned and operated by the Prairie Island Indian Community.
The plaintiff alleges that the casinos offer Class III card games that are not authorized by the tribal state gaming compact, when the tribes agreed to offer only slot machines and blackjack. The Grand casinos, the lawsuit alleges, offer those games plus three-card poker and Ultimate Texas Hold ‘Em. Treasure Island also offers the game, but they are now legal after an October 2023 compact amendment.
The games gave the tribes a competitive advantage over the racetrack, according to the lawsuit, which offers similar card games.
Racetrack CEO Taro Ito said in a statement: “All that we have ever sought was to be treated fairly, compete on a level playing field, take advantage of improvements within the pari-mutuel environment, and operate without fear of being eliminated.”
The Minnesota Legislature has about a month left in its session, with lawmakers debating whether to legalize mobile sports betting. This is a sore point for the two racetracks, which want to be included if the tribal casinos are. Some bills would give gaming tribes exclusive rights to offer sports betting—with some revenue sharing for racetracks.
Recently the Minnesota Racing Commission voted to allow historical horse racing machines at racetracks, but the tribes are opposed. They argue that the machines are video slot machines, in violation of the compacts.
