Department of the Interior declares Florida-style tribal gaming agreements permissible
In a draft regulatory update, the government department affirms the legality of “hub-and-spoke” compacts akin to the agreement in Florida with the Seminole Tribe
The US Department of the Interior (DOI) has published a draft regulatory update which confirms states can make compacts with tribes to allow the operation of off-reservation betting.
The draft document clarifies where the department stands on Class III Tribal-State Gaming Compacts, often referred to as a “hub-and-spoke model”, which allows state-wide mobile sports betting under the Indian Gaming Regulatory Act of 1998.
Such an arrangement already exists in Florida between the state and the Seminole Tribe of Florida, which has led to legal battles and frustration in the Sunshine State.
This agreement allows an effective state-wide online sports betting monopoly for the tribe through Hard Rock Bet.
However, cases in both state and federal courts have been launched in relation to the Seminoles monopoly on Floridian sports betting.
The most high-profile case came from parimutuel operator West Flagler Associates. The Florida-based operator successfully challenged the validity of the Seminole Tribe’s compact with the state in November 2021 that led to the temporary closure of the online sportsbook.
A protracted legal case ensued, with the challenge ultimately moving from Florida’s courts to the DC Court of Appeals. The Court of Appeals sided with the Seminoles, allowing the tribe to relaunch the Hard Rock Bet online sportsbook, which the tribe did in December 2023.
West Flagler submitted a writ of certiorari to the US Supreme Court to review the Court of Appeals’ decision. This is currently under review and should the Supreme Court take up the case, the ruling would be expected at some point in 2025.
The DOI’s draft document echoes that of the Court of Appeals’ judgment as it states: “A compact may include provisions addressing regulatory issues concerning state-wide mobile wagering provided that state law authorises the portion of the wager transaction occurring off of Indian lands.”
The new regulations will be effective 30 days after being published in the Federal Register, which the DOI expects to happen in the coming days.
Deb Haaland, DOI secretary, said: “These regulations are part of the Biden-Harris administration’s commitment to ensuring that tribes have the resources they need to exercise their tribal sovereignty and support their communities.
“Not only does Indian gaming support tribal economies, the funding it generates helps to support the vital services that tribal nations provide to their citizens, from language preservation to healthcare. By updating these regulations, we will provide certainty and clarity to tribes for an industry that remains one of the most significant sources of economic development in Indian country.”
Bryan Newland, assistant secretary for Indian Affairs at the DOI, added: “The federal government has treaty and trust responsibilities to tribal nations. A key part of that is our obligation to support tribal nations as they work to revitalize communities by opening businesses and creating jobs that strengthen their economic self-sufficiency.
“By providing clarity on Class III gaming compact negotiations, the Biden-Harris administration is following through on its commitments to Indian country.”