Minnesota Tribal Casinos Face Racketeering Lawsuit

Article by : Erik Gibbs Apr 18, 2024

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Running Aces, a prominent horse racing track in Minnesota, has taken steps in its pursuit of fair competition within the state’s gambling industry. The track has filed a federal racketeering lawsuit against several tribal casinos, including the likes of Grand Casinos and Treasure Island Resort & Casino.

Running Aces’ legal action implies that tribal casinos have been offering unauthorized card games, thereby violating state compacts under the 1988 Indian Gaming Regulatory Act.

These alleged “class III” card games, such as Three Card Poker and Ultimate Texas Hold ‘Em, stand accused of providing tribal casinos with an unfair competitive advantage not sanctioned by existing agreements.

Taro Ito, the CEO of Running Aces, has been vocal about the track’s stance, emphasizing the importance of fair competition and expressing the intention of letting the facts speak for themselves in a court of law.

“All that we have ever sought was to be treated fairly, compete on a level playing field, take advantage of improvements within the pari-mutuel environment, and operate without fear of being eliminated,” said Ito in a written statement.

The lawsuit’s timing is particularly significant. It unfolds amidst legislative discussions regarding the potential legalization of mobile sports betting, a development that could significantly impact the dynamics of the state’s gambling landscape.

Tensions simmer in the halls of the Legislature as bills proposing the legalization of mobile sports betting grant exclusive rights to tribal nations, leaving horse tracks like Running Aces behind.

The proposed stipends offered to these tracks were met with dissatisfaction, with critics arguing that they fail to adequately address the looming threat posed by mobile sports betting to their fair chances of survival.

Complicating matters further is the contentious issue of the approval of Historical Horse Racing (HHR), a machine-based game that allows users to wager on past horse races. The Minnesota Racing Commission’s authorization of HHR faced staunch opposition from DFL leaders.

The lawsuit filed by Running Aces is tangled in political and economic interests. It is a reflection of the deep-seated tensions between DFL loyalty to tribal nations and Republican support for the horse tracks—a tension that could ultimately influence the fate of the proposed sports betting legislation.