Tribes are sovereign nations with primary jurisdiction over their lands and citizens, and as such, they maintain the power to establish laws, regulate activities, and manage resources without interference (to a certain extent) from state or federal governments. In 1987, the Supreme Court recognized Tribes’ inherent sovereign right to offer gaming on Tribal lands. California v. Cabazon Band of Mission Indians , 480 U.S. 202 (1987). In 1988, IGRA was enacted to facilitate government-to-government relationships between tribes and states with respect to gaming regulation. 25 U.S.C. § 2701 et seq . During IGRA compact negotiations, tribes have negotiated for substantial exclusivity to offer certain types of Class III gaming, including sports betting. This exclusivity is a bargained-for benefit, often resulting from years of government-to-government negotiations between sovereigns. Additionally, the sports betting conducted pursuant to IGRA compacts or in accordance with state gaming regulations afford both tribes and states substantial revenue streams that fund important government services. However, Sports Contracts diminish the market share for regulated sports betting, which reduces revenues for tribal and state governments. For tribes, this revenue funds essential tribal government services, which directly benefits the lives of their tribal citizens. This revenue is critical for tribal governments because they oftentimes do not have access to revenue sources typically available to sovereign governments, such as taxes or unimpeded land and natural resource development. For states, in addition to receiving revenue under IGRA compacts, the tax revenue from sports betting is significant. For example, in states that have legalized sports betting, at least $1.8 billion in tax was collected in fiscal year 2023. See Adam Hoffer, Bets on Legal Sports Markets Pay Off Big for States, Sportsbooks, and Consumers , Tax Foundation (Dec. 10, 2024) (accessible here). States generally impose high tax rates on sports betting operators to fund state programs to regulate and mitigate impacts of gaming. See id. ; Adam Hoffer, Online Sports Betting Taxes by State, 2024 , Tax Foundation (Sept. 17, 2024) (accessible here). By encroaching on the sports betting market, Sports Contracts infringe upon tribes’ bargained-for exclusivity, diminish the value of government-to-government agreements, and threaten the critically needed revenue that funds important government services for both tribes and states. B. Authorizing Sports Contracts Would Undermine Tribal and State Sovereignty As noted above, tribes are sovereign nations with the exclusive right to regulate activities, including gaming, within their territories. This right is inherent by virtue of tribes’ sovereignty. Cabazon , 480 U.S. at 207, 219–22. When IGRA was enacted, it expressly codified this “exclusive right [for tribes] to regulate gaming activity on Indian lands,” id. § 2702, subject to limited exceptions. This includes “sports betting.” 25 C.F.R. § 502.4. Indeed, many tribes offer sports betting pursuant to Tribal-State Class III gaming compacts (“IGRA compacts”), oftentimes exclusively. 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); 1 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 reservation under its IGRA compact) (accessible here); Tribal / State Compact between the Mississippi Band of Choctaw Indians and the State of Mississippi, § 4.21 (Jan. 29, 1993) (“‘Sports pool’ means the business of accepting wagers on sporting events by any system or method of 1 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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