The Cayuga Nation has filed a lawsuit against Caesars Entertainment, claiming the company is offering online betting on tribal lands in violation of the Indian Gaming Regulatory Act (IGRA). It is the first known instance of a tribal group bringing legal action against a licensed sportsbook.
“Despite clear statutory mandates, Defendant (Caesars) conducted gaming within the Reservation without the Nation’s authorization, approval of a Tribal-State compact, or oversight by the National Indian Gaming Commission (“NIGC”) or the Secretary of the Interior, as required by IGRA,” states the complaint.
It adds that Caesars’ advertising falsely suggests its sports betting platform is available throughout the state, “omitting any disclosure that mobile sports wagering may be unlawful on Indian lands.”
Other Sportsbooks Block Access on Reservation
David Burch, a lawyer representing the Nation, told The Citizen last August that they had “proactively reached out to mobile betting operations to inform them on the law and requirements regarding mobile betting operations on the Nation’s reservation.”
Burch said that casino gaming and online sports betting are “not permitted on Indian lands unless both a federally approved gaming ordinance and a tribal-state compact are in place, even if the state has otherwise authorized such gaming.”
The Cayuga Nation has a valid and approved gaming ordinance, but it has not entered into a compact with the state of New York, meaning it does not offer online sports betting.
DraftKings and FanDuel, which hold the lion’s share of New York’s sports betting market, agreed to block user access on the tribe’s lands. Caesars, however, did not.
Bet Location Up for Debate
The lawsuit centers on a dispute over where a bet is made. The Cayuga Nation asserts that it is where a bettor is physically located.
The lawsuit states, “Through Defendant’s applications and servers licensed by the New York State Gaming Commission, Defendant accepted wagers placed from physical locations within the Reservation’s boundaries, including wagers from users who are present on Indian lands.”
This means these bets are illegal, as the tribe is not authorized to accept wagers on its lands, according to the Cayuga Nation.
Caesars may point to New York’s gaming laws, which state, “All sports wagers…are considered placed or otherwise made when and where received by the mobile sports wagering licensee on such mobile sports wagering licensee’s server or other equipment used to accept mobile sports wagering at a licensed gaming facility, regardless of the authorized sports bettor’s physical location within the state at the time the sports wager is placed.”
This would appear to allow Caesars and other licensed sportsbooks to accept wagers from anywhere in New York, as long as the servers are at licensed facilities. The gaming laws do not address users located on Indian lands.
Arguments Reversed From Other Tribal Disputes
In Florida, the argument is reversed. The Seminole Tribe has exclusive rights to offer online sports betting throughout the state as long as the bets are processed on servers located on tribal lands. A judge dismissed a legal challenge against the tribe last year.
Tribes in Colorado attempted to use the same argument as the Seminole Tribe, that an online bet’s location is where it is processed on a server, not where the bettor is physically located. A judge dismissed the case brought by the Southern Ute and Ute Mountain Ute tribes last year.
“This Court finds that the gaming occurs where the bettor is located,” Judge Gordon Gallagher wrote in his ruling.
Tribe May Also Bring Action Against Prediction Markets
Highlighting the lawsuit on X, gaming legal expert Daniel Wallach said the case against Caesars could foreshadow action against prediction markets, particularly Kalshi.
“Currently, 18-year-old high school students across the United States, including some that are located on Indian reservations, are on their phones placing bets on the outcome of virtually every sporting event occurring across the globe, without any regulation of that betting by states or Indian tribes and the protective measures related to corruption and problem gambling imbedded in such regulatory schemes, in contravention of federal, state, and tribal law,” states the lawsuit.
Wallach noted, “That describes Kalshi, not Caesars.”
A coalition of Native American Tribes, including the Seminole Tribe, but not the Cayuga Nation, filed an amicus brief in support of New York State in its battle against the CFTC this week. The CFTC sued New York in April after the state’s Attorney General filed lawsuits against Coinbase and Gemini.
The Caguya Nation is also involved in a dispute with New York authorities. It filed a lawsuit against the state’s Gaming Commission last year, alleging the state was unlawfully conducting Class III gaming activities on tribal land through lottery products and terminals.
When asked if the tribe intends to take action against prediction markets, it did not respond. Tribal groups in Wisconsin, California, and New Mexico have filed lawsuits against Kalshi over claims it is violating the IGRA by offering sports betting on tribal lands.
