Running Aces, one of Minnesota’s two horse tracks, has amended a lawsuit against the state’s tribal nations after an unsuccessful meeting between the parties in which sports betting and gaming were discussed before legislative action on the former was tabled last weekend.
Legal Squabble
There are 20 Native American casinos in Minnesota operated by 11 federally recognized tribes offering slot machines and certain table games. The tribes hold a great deal of political sway in Minnesota with staunch support, especially from the Democrat-Farmer-Laborer party. The tribes have thwarted past attempts to bring online sports betting to the Minnesota masses but a recent bill gives the tribal nations sports betting exclusivity which is what they have been seeking.
Unfortunately, the state’s two horse tracks would like a piece of that sports betting pie and were recently granted the authority to bring historical horse racing machines (HHRs) to their respective venues. But the HHRs are virtually identical to slot machines which is why the tribal nations immediately filed an injunction to prohibit the tracks from getting those moneymaking one-armed bandits that could cannibalize the tribe’s slot revenues.
But Running Aces, one of Minnesota’s two horse tracks, filed a lawsuit of their own against executives of the two major gaming tribes, Mille Lacs Band of Ojibwe and the Prairie Island Indian Community, contending their casinos were offering more table games than the only one they are allowed to have under their compact – blackjack. The suit accuses the tribes of offering Ultimate Texas Poker and Three Card Poker which would be against the compact rules.
Lawsuit Amended
A meeting last week between the parties to reach an agreement on all aspects of gaming in the state including online sports betting, a bill that has yet to be passed in the legislature, proved unproductive and the sides are seemingly further apart than ever before.
Running Aces has now amended its lawsuit to include prohibiting tribes from offering slot machines, which it contends violates the Indian Gaming Regulatory Act (IGRA) because it is not allowed anywhere else in the state.
“What people don’t understand about IGRA was the intent was never to give tribes a monopoly on video games of chance or any sort of gambling,” said Running Aces CEO Taro Ito. “The intent of IGRA was always to create a level playing field and allow tribes to do what others are doing in the state.”
The Sports Betting Bill
What’s at stake is a sports betting bill combined with Representative Zack Stephenson’s bill, HF 5274, that would prohibit tracks from offering historic horse racing (HHR) machines.
“They’re continuing with a sports betting bill that basically doesn’t give us anything. I mean, Zack is essentially offering us $105,000, and that’s crazy. They’re giving charities 30-to-40 million. Both tracks and horse associations are going to be negatively affected by this sports betting exclusivity to tribes.”
The tracks do have several Republicans supporting them, which means any sports betting bill would need a significant incentive for the tracks and it doesn’t appear this version accomplishes that. Should the sports betting bill fail to get passed this week, it will be taken up in the next legislative session and Minnesotans will have to continue to wait to place a legal bet on sports.
