Gaming tribes are closely watching the Supreme Court, which is expected to rule soon in Christie v. National Collegiate Athletic Association, which could mean a new source of income for tribal casinos, or could complicate already complex relations between tribes and the states they have gaming compacts with.
In this case New Jersey is challenging the constitutionality of the Professional and Amateur Sports Protection Act (PASPA,) which prevents all but four states from allowing sports betting.
During oral arguments in December, several Justices appeared skeptical of the law’s constitutionality. Ironically, online gaming markets have set the odds at 80 percent of PASPA being overturned.
If the court lifts the ban, that would open the way for states to decide what they want to do. Tribes are fearful that states may act without consulting them, and possibly endanger the exclusivity of their gaming compacts in some cases.
While tribal gaming is governed by the Indian Gaming Regulatory Act (IGRA) that law doesn’t mention sports betting, which could mean that states would be able to do whatever they choose.
IGRA stipulates that a tribe can conduct any gaming activity that is legal in its state, with varying requirements depending on whether the games are Class II or Class III. It is unknown which classification sports betting would fall under.
That is an important consideration since tribes can conduct Class II gaming without a compact with the state, although under the federal government, while Class III games require one.
Compacts that give tribes exclusive rights within defined areas may need to be renegotiated.
Also complicating things: The Supreme Court could invalidate all or part of PASPA, or, surprise, surprise, not lift the ban at all.
Most legal experts expect that sports wagers would come under Class III since it does not involve a bingo like game, which is Class II, or a social game with minimal prizes, as in Class I. The National Indian Gaming Commission’s General Counsel has offered the opinion that the form of sports betting in which “players compete against other players” is Class III, but that, ultimately, just an opinion.
