Appeals Court Upholds Tribal Sports Betting Monopoly in Washington

18.12.2024

A recent ruling by the U.S. Court of Appeals has solidified tribal exclusivity in Washington’s sports betting market. The decision upholds a lower court’s dismissal of a lawsuit brought by Maverick Gaming, a card room operator challenging the state’s policy granting tribes exclusive rights to operate retail sportsbooks.

The Case Against Tribal Exclusivity

Maverick Gaming argued that Washington’s policy violated the 10th Amendment and the Equal Protection Clause by allowing tribes to hold a monopoly over sports betting. The company claimed the arrangement unfairly disadvantaged non-tribal operators like itself, limiting competition in the state’s growing sports betting industry.

However, the U.S. District Court for the Western District of Washington dismissed Maverick’s case in 2023, citing legal protections for tribal sovereignty. On appeal, the U.S. Court of Appeals for the Ninth Circuit affirmed the lower court’s ruling, further emphasizing the legal and economic protections afforded to tribal gaming operations.

Tribal Sovereignty at the Center

Central to the court’s decision was the argument made by the Shoalwater Bay Casino, one of the tribal entities involved in the case. The casino argued that the lawsuit infringed upon tribal sovereignty and that its interests could not be adequately represented by the federal government.

The appellate court sided with this argument, stating that the lawsuit posed a direct threat to the economic and sovereign interests of tribal nations. It also noted Washington’s contentious history with tribal gaming, suggesting that federal representation in this matter would not be sufficient to protect tribal rights.

Sports Betting Landscape in Washington

Washington legalized retail sports betting in 2020, allowing tribal casinos to offer in-person wagering. The first sportsbook opened at Snoqualmie Casino in 2021, operated by the Snoqualmie Tribe. Since then, 23 tribes have opened sportsbooks across 29 casinos offering Class III gaming, which includes sports betting.

Despite the limited scope of legalized sports betting, the tribal monopoly has remained a significant point of contention for operators like Maverick Gaming, which hoped to expand its offerings beyond card games.