Tribal Gaming Compacts and Sports Betting

The integration of sports betting into Tribal Gaming Compacts poses a complex legal challenge in the post-PASPA era, primarily due to the interpretation of the Indian Gaming Regulatory Act (IGRA) of 1988. The restriction of tribal gaming to "Indian Lands" under IGRA has created a jurisdictional crisis with the rise of mobile wagering.

Introduction to Tribal Sports Betting Models

Three primary models have emerged for the integration of sports betting into Tribal Gaming Compacts, each with its unique characteristics and implications:

Retail-Only Model

• Betting is restricted to physical tribal casinos, as seen in early implementations in North Carolina.
• This model adheres strictly to the IGRA's definition of "Indian Lands" but limits the reach and revenue potential of sports betting.

Tethered/Partnership Model

• Tribes hold the licenses but contract with commercial operators, such as DraftKings or FanDuel, as observed in Michigan and Arizona.
• This model allows for a broader reach through partnerships while maintaining tribal oversight and revenue sharing.

Hub-and-Spoke (Florida Model)

• A legal framework where bets placed anywhere in the state are deemed to occur on tribal land because the servers are located there.
• This model, validated by the outcome of West Flagler Associates v. Haaland, effectively grants tribes mobile monopolies, raising concerns about market competition and consumer choice.

Challenges and Controversies in Tribal Sports Betting

Significant friction remains in states like California, where the clash between tribal sovereignty and commercial expansion led to the failure of Props 26 and 27. Similarly, in Oklahoma, political disputes over compact renegotiation have stalled legalization efforts. These challenges underscore the need for careful consideration of the legal, political, and economic factors involved in integrating sports betting into Tribal Gaming Compacts.

Conclusion

The evolution of sports betting within Tribal Gaming Compacts is marked by legal complexities and jurisdictional challenges. Understanding these dynamics is crucial for the development of coherent regulatory frameworks that balance tribal sovereignty with the expanding landscape of sports betting. Evidence-based approaches, considering the experiences of various states and the implications of different models, are essential for navigating these complexities and ensuring that the integration of sports betting benefits both tribal communities and the broader public.