Online gambling loopholes raise concerns for tribal gaming operations

Online gambling platforms operating through federal regulatory loopholes are raising concerns among tribal gaming leaders who say the industry threatens tribal gaming rights and state authority, according to ICT. Victor Rocha, conference chair for the Indian Gaming Association and a citizen of the Pechanga Band of Indians, said prediction markets allow companies to offer gambling-like services nationwide while avoiding state gaming compacts that govern tribal casinos.

Some tribes and states are exploring regulatory models that could include tribes in online gaming systems, according to ICT. A 2021 compact between the Seminole Tribe of Florida and the state of Florida established a “hub-and-spoke” model allowing mobile sports betting through servers located on tribal land. Wisconsin lawmakers are considering similar legislation that would allow the state’s 11 federally recognized tribes to operate online gaming systems within the state under tribal authority.