Tribal Lawyers Explore Legal Options for Prediction Markets
Victor Rocha and Jason Giles of the Indian Gaming Association hosted three well-known tribal gaming attorneys on the IGA’s New Normal webinar series May 14, assessing how prediction markets impact tribal sovereignty and gaming rights. In recent months the series has explored the rising challenge from sweepstakes sites. It is now highlighting prediction markets as they continue to expand.
All three guests – Joseph Webster, Bryan Newland and Scott Crowell – called prediction markets, specifically with regard to sports contracts, an “existential threat” to Indian gaming. The issue now, they said, is deciphering the best legal pathways to pursue.
Giles, who serves as executive director of the IGA in Washington, talked about his discussions with policymakers in recent days and how unaware of the subject most seemed to be. He mentioned conversations with Nevada officials, who told him they haven’t been approached by the state’s commercial operators about the issue.
Tribes have so far been among the biggest detractors of prediction markets. The federally legal exchanges operate in all 50 states, including those that have compacted with tribes for gaming exclusivity. Since the Commodity Futures Trading Commission, which currently oversees prediction markets, opened a portal for public comment on the exchanges earlier this year, the majority of input has come from tribal interests.
Jurisdiction is a key component of this issue for all parties. Prediction markets such as Kalshi have argued that they are federally legal under the CFTC and therefore are preempted from state gaming laws. This has been successful so far – Kalshi has secured preliminary injunctions to operate in Nevada and New Jersey after countersuing both.
If the Commodities Exchange Act (CEA) supersedes state gaming law, then so too does IGRA, Newland opined. It is unclear how a direct CEA-IGRA tête-à-tête would play out, but so far, other arguments have fallen flat.
Webster said IGRA was mentioned in a Kalshi brief in its case against Nevada. The company argued that sports event contracts are not defined under IGRA and, even if they were, the CFTC would still have exclusive jurisdiction.
“Think about that – they’re essentially saying that Congress, in passing the CEA, has displaced any role for tribes and tribal regulators in what I think is clear to everybody is a gaming activity,” Webster said. “So the fact that these arguments really haven’t been made, at least not in detail, I think is a concern.”
Introducing IGRA into the fight, even in a losing scenario, could still result in clarity for tribes, Newland argued.
“If it’s gaming, they’re violating tribal laws and, if it’s not gaming, then why are we following IGRA at all?” he commented. “That’s what’s at the core of this whole thing.”
“You have to admire their chutzpah,” Rocha said. “They’re almost tribal in their chutzpah.”
The National Indian Gaming Commission was also mentioned, as it is one of the few federal agencies connected to Indian gaming. Newland said the commission ruled years ago that sports betting is considered Class III gaming, which would run counter to Kalshi’s assertion in Nevada.
However, the NIGC has been hamstrung without a confirmed chair for more than a year and it is currently awaiting a new nomination from the Trump administration. And as with other Trump appointments, there’s no telling who the nominee might be or how it might affect these efforts.
Numerous Sault Tribe Executives Resign
Four executives from Michigan’s Sault Ste. Marie Tribe of Chippewa Indians and its Kewadin Casinos arm resigned May 13, per a release. These included the tribe’s CEO, CFO and general counsel, as well as the Kewadin Casinos CFO—interim appointments have since been made, the tribe announced.
The exodus relates to a missed payment from a prior class action lawsuit as well as a recent cyberattack that severely impacted operations for the tribe and its casinos. As a result of the lawsuit, which stemmed from two proposed casinos that were never built, the tribe paid $25 million in 2023 and had $5 million left to pay by May 1. However, the payment was not made, and the tribe was forced to negotiate a new settlement, resulting in $5 million in additional penalties.
“At this time, we’d like to thank those individuals for their years of service to the Sault tribe,” tribal Chair Austin Lowes said, per MyUPNow. “There’s nothing else to say; I’m not interested in running anyone through the mud. I appreciate what they provided the tribe but we’re moving in a different direction at this time.”
UKB Signs Oklahoma Model Compact
Oklahoma’s United Keetowah Band of Cherokee Indians signed the Model Tribal Gaming Compact with the state on April 29, per a May 12 report from Indian Gaming. The compact, which covers gaming on tribal lands under IGRA, now requires final approval from the U.S. Secretary of the Interior to take effect.
The UKB operated a casino in the state for years before it was forced to close after being sued by the Cherokee Nation over land rights. The Department of the Interior reaffirmed the UKB’s jurisdiction in January by ruling that both the UKB and the Cherokees had concurrent jurisdiction over the Oklahoma Cherokee Reservation. In April, the National Indian Gaming Commission then approved the tribe’s updated gaming code, meaning it is now able to regulate gaming on its trust lands.
“These three developments form the bedrock of our renewed path towards gaming and economic development for our members,” said UKB Chief Jeff Wacoche. “The Department of the Interior has made clear that the UKB has equal jurisdiction on Cherokee lands. The NIGC has approved our authority to regulate gaming. And now, with the state’s compact in hand, we can begin building a future that broadens the horizon of potential of our people.”
White Earth Casino Proposal Sparks Concern About Aquifer
A proposed casino complex from the White Earth Band of the Minnesota Chippewa Tribe has drawn some concern about potential harm to the Buffalo Aquifer, which is underneath the proposed site near Moorhead.
The tribe has been consulting with local officials in efforts to garner support for a land into trust application, and the issue of potential water contamination has been raised, per The Forum. Chairman Michael Fairbanks asserted at a Clay County Commission meeting that his tribe aims “to protect that water because we know how important it is.”
Jamul Casino Names New CFO
California’s Jamul Casino Resort May 12 appointed Lori Ware as its new chief financial officer. Ware has held financial roles at several tribal and commercial gaming companies, including Yaamava’ Resort & Casino, William Hill US, Caesars and more. She joins the casino at a pivotal time, with a spa and hotel tower expansion slated to open this year.
“We are thrilled to welcome Lori as our new chief financial officer,” Jamul President and General Manager Mary Cheeks said in a statement. “Her extensive expertise in tribal gaming operations and impressive track record of financial leadership will be extremely valuable as we continue to enhance our guest experience and prepare for the opening of our new, luxury hotel tower this summer.”
