States can now agree to agreements that allow tribes offer gaming outside of their reservation. It is the DOI rules’ goal to simplify the negotiation process for tribes, as gaming has been identified by the DOI as “one of most important drivers of tribal economy development”.
Seminole Tribe in Florida has used the “hub and spoke” model to route bets through test servers. According to the rules, the Seminole Tribe has a virtual monopoly on online sports betting in Florida.
These regulations will also make it easier for tribes to obtain the approval of the DOI for their compacts with the states.
By clarifying the boundaries of aspects of negotiations, delineating key terms and defining when the DOI is to review a tribal compact, the alterations to the 25 C.F.R.Part 293, are expected to improve the clarity for the DOI in approving tribe deals.
According to the DOI, the final rule “reflects the input and suggestions provided by the tribes”, the new regulation will be effective 30 days following its publication in the Federal Register. It is anticipated that this will happen in the next few days.
DOI Secretary Deb Haaland stated: “Indian gaming not only supports tribal economies but the funds it generates help to support vital services provided by tribal nations to their citizens.
By updating the regulations, we provide clarity and certainty to Indian tribes in an industry which remains a significant source of economic development for Indian Country.
The Assistant Secretary for Indian Affairs, Bryan Newland said: “The Biden-Harris Administration is fulfilling its commitment to Indian Country by providing clarity regarding Class III Gaming Compact negotiations.”
“Hub-and-spoke” model in Florida
After a long-running legal fight, the US Supreme Court denied West Flagler’s request to remain in Florida.
In November, the Seminole Tribe launched Hard Rock Bet, which is a mobile sports betting app available throughout the entire state.
Initially, the compact was approved in 2021. However, the District of Columbia’s decision that the Seminole Tribe deal violated the Indian Gaming Regulatory Act halted the progress.
This ruling, however, was overturned in 2023 and the Seminoles were once again given free rein in Florida. The Seminole Tribe was able to launch Hard Rock Bet after West Flagler’s motion to remain was denied. This is a significant win for both the Seminole Tribe as well as tribal gaming in general.
The Tribal Sovereignty is under Attack
As tribal nations battled for sovereignty within the United States, 2023 held a great deal of importance.
Tribes have stepped up to protect their casino and gambling rights, despite the fact that state governments want to gain more control of Indian land and there are still concerns about courts.
Tribal gaming has a good performance overall. In its annual report, the National Indian Gaming Commission reported that revenues for 2022 would increase by 4.9% to $40.00. This $1.9bn increase is the largest ever.
Even with tribal casinos and gaming performing well, politicians and commercial interests are looking for a piece of this success. State governments and courts are involved.