In 2019, New York legalized retail sports betting. The state’s tribal casinos could join in as long as they did it on tribal land.
Oneida Indian Nation, Saint Regis Mohawk Tribe, and Seneca Nation participated.
Then came online sports wagering which muddied the waters. Even worse, is the push for online gaming. Or does it. Kathryn Rand, co-director of the Institute for the Study of Tribal Gaming Law and Policy, told Tribal Business News tribes did not need an amendment. according to PlayUSA.
Existing state compacts expressly permit tribes to operate any Class 3 game that is subsequently legalized by the state. As a result of that automatic amendment provision, no additional amendments were necessary to authorize tribal sportsbooks.”
According to Rand, this meant tribes could offer this new form of gambling because it already fell under Class 3 gaming per the state/tribal compact.
But when New York legalized online sportsbooks, things became murky. The new law said the server for online bets had to be located on the site of commercial casinos.
Tribes could begin over to obtain a commercial license. Or partner with a commercial operator in exchange for profit-sharing. They chose the latter.
The Oneida Indian Nation and Saint Regis Mohawk Tribe partnered with Caesars Entertainment, while Seneca Nation partnered with FanDuel.
Still, online casinos could increase tribal-state tensions despite the compacts. Tribes have the option to redo their revenue-sharing arrangements with commercial operators to bring online games into the mix.
Seneca Nation might think twice about a renegotiation after they forked over $566 million in back casino payments and then saw Governor Kathy Hochul reallocate the money for a new football stadium for the Buffalo Bills.
In a radio ad, the tribe said:
“The additional funding gave Governor Hochul a great opportunity to help repair our roads, build hospitals, fix our bridges and support our schools. What did she do instead? She gave away hundreds of millions of dollars to build a football stadium for the NFL.”
