Tribal Online Gambling Gets Boost From New Rules
Florida Compact Could Set the Precedent

As more states begin to add legalized sports betting, the concept of state compacts with Native American tribes has gotten more attention. Some states that want to offer sports betting cannot do so with the tribes offering consent. This is due to the different compacts states with the tribes in their states. Compacts are required under the Indian Gaming Regulatory Act and lay down the groundwork for class III gambling on Indian grounds. Federal regulations that deal with tribal online gaming and other aspects of tribal gambling are updated constantly. The U.S. Department of the Interior’s Bureau of Indian Affairs published its updated rules in the Federal Register on Feb. 21, 2024. They go into effect after 30 days.
The updated regulations show several significant changes compared to previous versions. Most of these are seen as beneficial to the tribes.
“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,” Secretary of the Interior Deb Haaland said in a release. “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.”
Florida Compact Causes Changes
One of the biggest changes to the rules is based on Florida’s compact with the Seminole Tribe. The compact said online bets are deemed to have taken place where the receiving servers are located. That goes against earlier precedent. But the DOI approved the compact with Florida and the Seminoles. Currently, the Seminoles are not offering online casino gambling. But the do offer online sports betting all over the state. The Seminoles also have retail sportsbooks at their larger casinos.
The U.S. Supreme Court can still throw everything into disarray. The plaintiffs in a federal lawsuit have petitioned the Court to hear the case. The matter is whether online bets made in the state actually constitute bets made on tribal lands. Whether the updated regulations have any impact on the Supreme Court remains to be seen.
Florida sports bettors are caught in the middle. A reversal by the Supreme Court would see legalized sports betting come to an end. But it could also see an influx of legal sportsbooks when it does become legal. Right now, the state’s sports bettors are limited to the Seminole’s Hard Rock Bet. Many of the best online gambling sites would love to come to the state. But right now it’s basically a monopoly.
But the rule change does say that the states have to have to approve the interpretation of wagers being made where servers are located. Native Americans cannot just starting offering tribal online gaming without the state’s consent through a compact or amendment. That will keep people from being interested in scores and odds due to placing online sports bets in a state that doesn’t want online sports betting yet.
Not All Proposed Changes Make it Through
One proposed change that didn’t make it in the final version was a measure that claimed states that offered any sort of class III gaming were regulating all forms of class III gaming. Class III gaming consists of sports betting, casino games, and online versions of those. The current rule that mandates states negotiate with tribes for games it currently offers will still be the policy going forward.
The tribal online gaming provision of the updated rules will have the biggest impact. They will make it easier to states and tribes to come to agreements on online gaming and not involve others. The states and tribes can negotiate compacts and not need constitutional amendments. It could have a significant impact on states like Florida and eventually California. But if could have little, if any, impact on other states.
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