19 Feb

Gambling News

The US Department of the Interior announces measures akin to those in Florida to safeguard tribal gambling.

The Department of the Interior (DOI) has announced revised federal regulations, such to those implemented in Florida, that enhance the "clarity and transparency" of Indian gaming compacts.
Betting on sports in Florida
The revised regulations authorise states to negotiate agreements enabling tribes to conduct gambling activities outside their reservations. The objective of the DOI's regulations is to facilitate negotiations for tribes, with gaming being a principal catalyst for tribal economic development.

The Seminole Tribe has employed the "hub-and-spoke" strategy for placing bets off Indian land, which are then routed through trial servers in Florida. The regulations confer upon the Seminole Tribe a de facto monopoly on online sports betting in Florida.

The regulations aim to simplify the process for tribes obtaining the DOI's clearance for compacts with states.

The modifications to 25 C.F.R. Part 293 are anticipated to elucidate the DOI's criteria for sanctioning tribal agreements by delineating negotiation parameters, defining essential terminology, and specifying the circumstances under which the DOI should evaluate a compact.

The DOI said that the final rule “incorporates input and recommendations from tribes,” with the new regulations taking effect 30 days post-publication in the Federal Register. This is anticipated to occur this week.

DOI Secretary Deb Haaland stated: “Indian gaming not only bolsters tribal economies, but the revenue it generates also sustains essential services that tribal nations offer to their citizens.”

“Updating these regulations will offer certainty and clarity to tribes regarding an industry that continues to be a major source of economic development in Indian country.”

Assistant Secretary for Indian Affairs Bryan Newland stated, “The Biden-Harris administration is fulfilling its commitments to Indian country by clarifying Class III gaming compact negotiations.”

“Hub-and-spoke” framework in Florida

The Seminole Tribe reintroduced Hard Rock Bet in Florida in November 2023.
The Seminole Tribe's de facto monopoly in Florida was established during a protracted legal dispute that culminated in the US Supreme Court rejecting West Flagler's bid to remain in Florida.

The Seminole Tribe and the state of Florida reached an agreement on statewide mobile sports betting, effectively establishing a monopoly, and the tribe initiated Hard Rock Bet in the state in November.

The compact received initial approval in 2021; however, the District of Columbia's determination that the Seminole Tribe's agreement violated the Indian Gaming Regulatory Act (IGRA) impeded advancement.

Nevertheless, that decision was overturned in June 2023, reinstating the Seminoles' autonomy in Florida. Following the denial of West Flagler's petition to stay, the Seminole Tribe was permitted to reintroduce Hard Rock Bet, marking a significant victory for both the Seminole Tribe and tribal gambling overall.

Assault on tribal sovereignty
The year 2023 was significant as tribal tribes advocated for sovereignty in the United States.

The Interior Department's indigenous nations engaged in a significant struggle for sovereignty in the United States in 2023.
As state governments want increased authority over Indian territory and concerns regarding the judiciary persist, tribes are resolutely defending their exclusive rights to casinos and gambling.

In general, tribal gaming is thriving. The National Indian Gaming Commission's annual report indicated that revenues in 2022 increased by 4.9% to $40. The $1.9 billion annual increase is the largest ever documented.

Despite the continued robust performance of tribal gaming and casinos, leaders remain apprehensive due to politicians and commercial gaming interests seeking to appropriate some of the tribal success. This is occurring via state governments and the judiciary.