Tribal gaming interests, which constitute about half of the U.S. gaming industry, are expected to have a major, if not dominating role in the expansion of sports betting nationally. That’s the conclusion of a report that was published last week by Sports Handle.
However much influence tribes have, expect there to be regional and state differences due to the various tribal state gaming compacts.
Tribal casinos have a major or growing impact in 13 of the 30 most populous states, states which make up more than 42 percent of the overall population. These include California, Florida, New York and Michigan.
So different are the various gaming compacts that Jerry Allen, a leader of the Jamestown S’Klallam Tribe in Washington, does not expect that tribes will have a united front on how to exploit sports gaming. For one thing, they are often competitors, either within the same state or region. An example is Foxwoods Resort Casino, owned by the Mashantucket Pequot Tribal Nation, and just a few miles away, also in Connecticut, the Mohegan Sun. These casinos are among the largest casinos in the world, not just in the U.S.
One key factor in determining the influence of tribes in sports betting will be whether their existing compacts addresses sports betting already, or even contemplate it as a possible future game to be offered. If that’s not the case, tribes and states will have to negotiate. Normally tribes are reluctant to renegotiate existing compacts because states often see this as a chance to demand a large percentage of their profits.
Some states will require constitutional amendment. In other cases tribes will interpret their existing compacts as allowing them to offer sports book. This was the case several months ago when the Santa Ana Star Casino & Hotel near Albuquerque, New Mexico began unilaterally offering sports wagering —without a consultation with the state.
The previously mentioned Foxwoods and the Seminole Hard Rock casinos are also becoming international players, competing with such gaming giants as MGM, Penn National Gaming and Caesars.
Because tribal casinos make such significant monetary contributions to some states, such as California and Oklahoma, they have built up a lot of influence with state government.
Tribal casinos offer two kinds of gaming, Class II, based on bingo and Class III, which is associated with Las Vegas style gaming. However, with the rise of technology in gaming, the lines between these two kinds of gaming are becoming fuzzy. Further blurring such distinctions is the historical horse racing games, which, while a variation on horse racing, look and give the feel of a slot machine.
We can expect to see sports betting divided into two forms, the traditional form, where a bettor stands in line or visits a kiosk within a casino and places bets. The second, and fastest growing form is mobile sports betting, which is based in a casino, but might be played anywhere in a state via a phone app.
Tribes are leery of the second form, because, while convenient for the player, doesn’t bring players into the physical casino. That is a major concern for rural operators of tribal casinos.
The National Indian Gaming Association issued guidelines on how sports betting should be developed last year after the U.S. Supreme Court lifted the federal ban on the sports book.
These principles include such things as that tribal sovereignty and the authority to regulate games must be acknowledged and that sports betting revenues will be taxed. They insist that if sports betting is legal anywhere in the state that it must be legal at tribal casinos. Most important from a tribal perspective is that sports betting not be seen as an excuse to reopen the Indian Gaming Regulatory Act for amendment.
