Caroline Pham, Acting Chairperson Commodity Futures Trading Commission Page 5 of 13 contrary to the public interest, per se. As such, we respectfully urge the CFTC to prohibit Sports Contracts pursuant to its authority under the CEA’s “Special Rule.” 2 A. Sports Contracts Constitute “Class III Gaming” Under IGRA. Sports Contracts necessarily constitute “Class III gaming” under IGRA because they constitute “sports betting.” In 1988, Congress enacted IGRA “to provide a statutory basis for the operation of gaming by Indian tribes as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.” 25 U.S.C. § 2702(1). IGRA established the National Indian Gaming Commission (“NIGC”) as an independent Federal regulatory authority “to protect such gaming as a means of generating tribal revenue.” 25 U.S.C. § 2702(3). Under IGRA, Indian gaming is “not only ‘a source of substantial revenue’ for tribes, but the lifeblood on ‘which many tribes have come to rely.’” Chicken Ranch Rancheria of Me-Wuk Indians v. California , 42 F.4th 1024, 1032 (9th Cir. 2022) (quoting In re Indian Gaming Related Cases , 331 F.3d 1094, 1097, 1099–1100 (9th Cir. 2003)). In fact, Indian gaming has become the most successful economic development initiative ever for Indian Country, lifting many tribes out of poverty and providing them with critical funding for education, healthcare, infrastructure, and cultural preservation. Pursuant to section 2710(d)(3)(A) of IGRA, Indian tribes and states are authorized to negotiate compacts to regulate “Class III gaming” on a government-to-government basis. Class III gaming includes various casino games, such as slot machines and banked card games, and, importantly here, sports betting. 25 C.F.R. § 502.4. In fact, many tribes offer sports betting pursuant to Tribal-State Class III gaming compacts (“IGRA compact(s)”). See e.g. , 2021 Seminole Compact, Part III.F(5) (defining term “Covered Games” to include sports betting) (accessible here); Third Amendment to the Lac Courte Oreilles Band of Lake Superior Chippewa Indians and the State of Wisconsin Gaming Compact of 1991, at 1–2, 6–8 (Sept. 14, 2022) (permitting the tribe to, among other things, offer retail sports betting on lands within its reservation under amendments to its IGRA compact) (accessible here); 3 Shoal Water Bay Indian Tribe and the State of Washington Class III Gaming Compact, Appendix S: Sports Wagering, §§ 3.1, 3.3, 4 (Sept. 15, 2021) (permitting the tribe to offer mobile and retail sports wagering within its 2 Any order, determination, rule, or regulation promulgated by the CFTC to this effect would be expressly limited to federal sports betting and event contracts, and could not disrupt state, local, and tribal sports betting regulatory schemes. 3 See also Press Release: Gov. Evers, Lac Courte Oreilles Band of Lake Superior Chippewa Indians Sign Compact Amendment Permitting Event Wagering , Office of the Governor, State of Wisconsin (Aug. 5, 2022) (“The [IGRA compact] amendment permits the [Lac Courte Oreilles Band of Lake Superior Chippewa Indians] to offer sports betting and other forms of event wagering at its existing Sevenwinds Casino . . . .”) (accessible here).
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