TRIBAL GAMING IN FOCUS

Another tribe joins the Southern Ute’s Colorado sports betting lawsuit, Newsom gives California tribes ability to sue card rooms, bomb scares at Seminole Hard Rock Tampa and more.

TRIBAL GAMING IN FOCUS

Second Tribe Joins Colorado Betting Lawsuit

Colorado’s Ute Mountain Ute Tribe late last week joined a lawsuit filed by the Southern Ute. The tribes are suing the state of Colorado, claiming it is illegally preventing them from offering legal digital sports betting. Colorado voters in 2019 approved a ballot initiative and wagering went live in May 2020.

The tribes, like others that are federally recognized, have the right to offer casino-style gambling per the Indian Gaming Regulatory Act. Both have casinos, and began offering in-person betting shortly after commercial operators launched. But according to the complaint, then- Colorado Division of Gaming chief Dan Hartman wrote letters to suppliers saying that the tribes did not have the right to offer betting off tribal lands.

The Southern Utes filed their lawsuit July 9, just three weeks after the U.S. Supreme Court declined to hear an appeal in the Florida wagering case that ultimately allowed the Florida Seminole Tribe to offer statewide mobile sports betting. In that case, an appeals court ruled that any bet placed within the state is considered to have been placed in Indian Country if it flows through a tribal server. In Florida, the state compacted with the tribe to grant it a monopoly.

Because digital bets are considered placed on tribal land in Florida, they are not subject to a state tax — something the state and the tribe also agreed to. But under the 2021 compact, the Seminoles, who have seven Las Vegas-style casinos in the state, are required to pay the state hundreds of millions per year.

State law in Colorado may not be the same. The state says the tribes should pay taxes on bets placed off tribal lands. Tribes in Arizona and Michigan pay their states taxes on bets placed off-reservation.

 

California’s Tribes Will Get Their Day in Court

California Gov. Gavin Newsom Sept. 28 signed SB549, the bill that will allow the state’s tribes to sue card rooms over the use of “player-dealers.” The tribes are now allowed one shot at a lawsuit against the card rooms. They must file by April 1, 2025.

At issue, tribes say, is the use of player-dealers, also known as third-party providers of proposition player services (TPPPS). These are companies that act as the bank in games such as blackjack and roulette.

Indian Country has the exclusive rights to gambling in California, per state law and the federal Indian Gaming Regulatory Act. The tribes and card rooms coexisted for many years, but in 2007, the card rooms began using TPPPS. The tribes say this infringes on their exclusivity, but they have not had an avenue to pursue change. Because the tribes are sovereign nations, they cannot legally sue the card rooms, thus the need for a one-time exception.

 

Seminole Hard Rock Evacuated Twice for Bomb Threats

Seminole Hard Rock Tampa was evacuated on two consecutive days due to suspicious devices that were found in two different men’s bathrooms on the property. The first evacuation took place shortly before midnight on Sept. 29 and the second came around noon on Sept. 30.

Law enforcement officials described the devices as crude and containing fireworks components, but no motive was given and no suspects were identified. Seminole police, the Hillsborough County Sheriff’s Office and the FBI were all involved in the case, according to the Associated Press.

 

California Tribes Restarting Initiative Discussion

Per PlayUSA on Oct. 2, California’s tribes have plans to again begin discussing and crafting a legal sports betting initiative. The tribes are bringing back a workgroup that was formed before Indian Country decided not to bring a proposal for the 2024 ballot. California Nations Indian Gaming Association Chairman James Siva told PlayUSA that work would begin anew on a proposal for either the 2026 or 2028 ballot. The workgroup will meet later in October.

Siva said the initial goal is to work out tribal priorities. He also said the first meeting would be composed only of tribal leaders, but that any tribal leader in California could join the discussion.

 

Hard Rock Tejon Holds Topping Off Ceremony

On Oct. 1, a topping off ceremony was held for California’s Hard Rock Hotel & Casino Tejon. The casino will be built in two phases, with the first phase slated for completion in late 2025 and the second phase coming 20 months beyond that. Amenities will include 150,000 square feet of gaming space with 3,000 slots and 48 tables, retail and dining options and more.

“Today marks a significant milestone as we place the final beam atop the Hard Rock Hotel & Casino Tejon,” Jon Lucas, chief operating officer at Hard Rock International, said in a statement. “This property represents our continued commitment to delivering world-class entertainment and hospitality while fostering a strong partnership with the Tejon Indian Tribe. We are excited about the economic opportunities this project will bring and look forward to the lasting positive impact it will have on the region for years to come.”