When New York expanded gaming to include online sports betting , it completely shifted the gaming dynamic between tribal and commercial operators. But with other forms of gambling on the horizon, like New York online casinos , many speculate tribal/state relationships could deteriorate even further. New York tribal gaming compacts can get fuzzy
In 2019, New York legalized retail sports betting, opening the door for tribes to begin offering bets so long as they took place on tribal land. From the start, the Oneida Indian Nation , Saint Regis Mohawk Tribe , and Seneca Nation began offering retail betting under the state/tribal compact.
But slowly, commercial properties were also allowed to provide in-person gambling. Speaking with Tribal Business News , Kathryn Rand, co-director of the Institute for the Study of Tribal Gaming Law and Policy , said : “[The] 2019 law authorized in-person, retail sports bets. Existing state compacts expressly permit tribes to operate any Class 3 game that is subsequently legalized by the state. As a result of that automatic amendment provision, no additional amendments were necessary to authorize tribal sportsbooks.” According to Rand, it was easy for tribes to begin offering this new form of gambling because it already fell under “Class 3” gaming per the state/tribal compact.
But when New York legalized online sportsbooks, things became murky. What about new forms of gambling in New York?
When NY online sports betting launched, tribes, essentially, were on the outside looking in. Under the new state gaming law, the server for online bets had to be “physically located” on the premises of one of the state’s commercial casinos. Thus, tribal entities had very few options to offer online betting.
They could create their product from scratch and attempt to receive a commercial license from the state. Or choose to partner with a commercial operator directly in exchange for profit sharing. With so few options, tribes took the profit-sharing route .
The Oneida Indian Nation and Saint Regis Mohawk Tribe partnered with Caesars Entertainment , while Seneca Nation partnered with FanDuel .
For perspective, after one year of operation, online sports betting in New […]
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