Legislation

US – Washington passes tribal only sports betting law

By Phil - 27 March 2020

Washington became the first state this year to legalise sports betting with an emergency provision bypasses the need for a voter referendum and allowing Governor Jay Inslee to sign ESHB 2638 into law to permit retail sports betting on tribal lands.

The state has 29 federally-recognised tribes. Mobile sports betting in Washington is not allowed outside the grounds of tribal casinos. The bill overcame friction from Washington’s cardrooms with an 83 to 14 vote in the Washington House.

Governor Inslee said: “This will give people an opportunity to participate in a new gaming activity that is safe and well-regulated by the tribes.”

“Tribes have more than twenty years’ experience with, and a proven track record of, successfully operating and regulating gaming facilities in accordance with tribal gaming compacts,” the bill stated. “Tribal casinos can operate sports wagering pursuant to these tribal gaming compacts, offering the benefits of the same highly regulated environment to sports wagering.”

Whilst obviously welcomed by Washington’s tribal casino operators, the card room owners are likely to launch a legal challenge.

Rebecca Kaldor, Washington Indian Gaming Association (WIGA) Executive Director, said: “We thank Governor Inslee for joining bipartisan majorities in the legislature to pass this careful and thoughtful approach to sports betting. The revenue generated by tribal gaming funds critical needs in our communities, and it enhances the lives of both tribal and nontribal Washingtonians.

“Tribal communities and governments are currently dealing with the devastating impacts of the coronavirus pandemic, with many tribal governments focusing on essential services and shutting down business activities such as casinos. As we recover from this crisis, the addition of this amenity will help tribal governments fund the essential services their members will need to get back up on their feet.”

“I think how tribes will operate their sportsbooks will differ from property to property,” Ms Kaldor added. “I think we’ll see a range of everything from a full-blown sports lounge to individual kiosks.”

Card room operator Maverick Gaming CEO Eric Persson said he would challenge the bill in the courts.
“The emergency clause is something we welcome because we think it’s flawed logic and there is no emergency. We think ultimately through litigation this legislation would probably be thrown out,” he said. “This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately. There is a win for all licensed gaming establishments that helps both Tribal and non-Tribal communities and the Legislature decided not to pursue it, giving up millions of dollars in tax revenue that could support local and state priorities.”
He will spend up to $30m challenging the tribes’ ‘tax-free monopoly,’ which he has slammed as unconstitutional.