Caesars Entertainment has moved for a dismissal of a federal lawsuit brought by a New York tribe over offering mobile sports betting on tribal land. However, they’re using the same argument crafted by the Seminole Tribe of Florida to do it.
The Cayuga Nation Tribe claims the company is violating the Indian Gaming Regulatory Act (IGRA).
Caesars has moved to have the suit thrown out, citing a previous federal ruling in Florida.
That ruling dictated that betting occurs where a gaming entity’s servers are located. Florida had granted the Seminole Tribe exclusive license to operate mobile sports betting throughout the state. A casino operator sued. The court ruled the tribe could serve the entire state as long as its servers were on tribal property.
The Supreme Court ultimately chose not to review the case.
Caesars is now making a similar argument in New York. The company argues that bets made anywhere in the state, including on tribal lands, is legal because its servers are on its properties. The company also claims that New York took that stance when it legalized sports betting.
“If the Nation is correct that New York’s framework is inconsistent with IGRA, then its dispute is with New York and its regulators,” Caesars said in the motion for dismissal.
Tribal Lands Now Geofenced
Beyond the regulatory framework, Caesars argues federal tribal gaming law doesn’t allow a tribe to sue a private sportsbook under this type of issue. The IGRA does, in fact, allow some legal action against private operators.
Caesars claims, however, the tribe doesn’t have standing for the suit because it lacks a Class III gaming license.
After receiving a cease-and-desist letter from the tribe in 2025, Caesars geofenced Cayuga National lands. However, it ignored the tribe’s attempts to obtain information on wagers made on the reservation.
Cayuga has until Sept. 22 to respond. Caesars would then have until Sept. 29 to reply.
The tribe has a similar legal action against the state over online lottery sales on its land.
Legal Expert Believes Tribe Has A Case
In June, Nova Southeastern University law professor Bob Jarvis told Card Player the Cayuga lawsuit may have merit.
“In previous cases, courts have made it clear that what is important is where the bet is placed, not where it is accepted,” Jarvis said. “This, of course, was how the United States was able to stop U.S. bettors from being able to bet on overseas gambling websites.”
Jarvis argues that under federal law, tribes are sovereign. He said this gives them the right to prohibit gambling on their lands.
“And even if they place their own gambling enterprises on their land, the result is the same because courts have made it clear that the sovereign does not have to provide equal opportunities when it comes to gambling, as opposed to other types of activities, where the sovereign must provide such equal opportunities to all competitors,” he said.
“The reason why the sovereign can discriminate when it comes to gambling, of course, is because gambling is considered a vice, and therefore the sovereign is free to regulate it as it wishes.”
While Caesars is making moves in New York, the company is now considering a buyout from Golden Nugget owner Tilman Fertitta’s company.
