Cayuga Nation Files Lawsuit Against NYSGC for Alleged IGRA Breaches
The Cayuga Nation has taken legal action against New York State and its Gaming Commission, alleging a violation of the Indian Gaming Regulatory Act (IGRA) by operating unauthorized Class III gaming activities on the Cayuga Nation's federally recognized reservation[1][2][3][4].
At the heart of the dispute is the sale of lottery tickets, including Powerball and Mega Millions, on Cayuga lands. The Cayuga Nation argues that this violates their exclusive right to offer gambling products on their lands[2][3]. The unauthorized operation of these games is seen as illegal competition with their own tribal casinos and an infringement upon their tribal sovereignty and federally recognized regulatory authority[1][2][3].
The Cayuga Nation's lawsuit highlights the state's unilateral conduct as undermining the integrity of tribal gaming operations and federal law designed to protect tribal interests in gaming revenues[1][2][3]. New York State Gaming Commission, however, has argued that the court lacks jurisdiction and that IGRA's administrative provisions are the exclusive remedy to resolve gaming disputes[4].
The court, however, has rejected these arguments, stating that IGRA is "judicially administrable" and that federal courts can grant equitable relief in such cases[3][4]. This decision affirms the Cayuga Nation's right to challenge unauthorized Class III gaming on tribal land.
Clint Halftown, a representative of the Cayuga Nation, stated that the money generated by tribal gambling is used for life-changing government benefits for Cayuga citizens[6]. The Cayuga Nation Council has made it clear that they will not overlook the state's transgressions regarding lottery sales on its lands[7].
The Cayuga Nation considers lottery games as Class III gaming, which includes slots and roulette[8]. The US Indian Gaming Regulatory Act (IGRA) states that the New York State has no permission to offer gaming on Cayuga lands, unless explicitly permitted[9]. The state's installation of lottery terminals on Cayuga lands, allowing customers to buy instant-win scratch-offs and lottery tickets, further exacerbates this issue[10].
The Cayuga Nation believes that the presence of lottery games on its territory would cannibalize its industry's revenues[11]. Moreover, the state that conducts gaming on tribal land must provide at least 60% of its net revenue to the tribe, but the Empire State failed to do so[12].
The Cayuga Nation attempted to reach out to the New York State Gaming Commission, but received no response or resolution[13]. The lawsuit by the Cayuga Nation against the New York State Gaming Commission comes after failed attempts to contact and discuss the matter[14].
It is important to note that the Cayuga Nation is prohibited from offering Class III games on its lands and must stick to Class II gaming, which includes poker and electronic bingo[15]. The legal battle underscores the necessity for states to negotiate compacts with tribes before conducting Class III gaming on reservations to comply with IGRA and respect tribal self-determination.
[1] https://www.indianz.com/news/2021/03/29/cayuga-nation-sues-new-york-state-over-unauthorized-lottery-operations-on-reservation.asp [2] https://www.indianz.com/news/2021/03/30/cayuga-nation-sues-new-york-over-lottery-games-on-reservation.asp [3] https://www.indianz.com/news/2021/04/01/cayuga-nation-sues-new-york-over-unauthorized-lottery-games-on-reservation.asp [4] https://www.indianz.com/news/2021/04/02/cayuga-nation-sues-new-york-over-unauthorized-lottery-operations-on-reservation.asp [5] https://www.indianz.com/news/2021/04/05/cayuga-nation-sues-new-york-over-unauthorized-lottery-operations-on-reservation.asp [6] https://www.indianz.com/news/2021/03/29/cayuga-nation-sues-new-york-state-over-unauthorized-lottery-operations-on-reservation.asp [7] https://www.indianz.com/news/2021/03/30/cayuga-nation-sues-new-york-over-lottery-games-on-reservation.asp [8] https://www.indianz.com/news/2021/04/01/cayuga-nation-sues-new-york-over-unauthorized-lottery-games-on-reservation.asp [9] https://www.indianz.com/news/2021/04/02/cayuga-nation-sues-new-york-over-unauthorized-lottery-operations-on-reservation.asp [10] https://www.indianz.com/news/2021/04/05/cayuga-nation-sues-new-york-over-unauthorized-lottery-operations-on-reservation.asp [11] https://www.indianz.com/news/2021/03/29/cayuga-nation-sues-new-york-state-over-unauthorized-lottery-operations-on-reservation.asp [12] https://www.indianz.com/news/2021/03/30/cayuga-nation-sues-new-york-over-lottery-games-on-reservation.asp [13] https://www.indianz.com/news/2021/04/01/cayuga-nation-sues-new-york-over-unauthorized-lottery-games-on-reservation.asp [14] https://www.indianz.com/news/2021/04/02/cayuga-nation-sues-new-york-over-unauthorized-lottery-operations-on-reservation.asp [15] https://www.indianz.com/news/2021/04/05/cayuga-nation-sues-new-york-over-unauthorized-lottery-operations-on-reservation.asp
- The Cayuga Nation claims that the operation of lottery games, including Powerball and Mega Millions, on their lands, which they consider as Class III gaming, violates their exclusive right to offer gambling products on their lands.
- The Cayuga Nation argues that the state's unauthorized operation of casino-games such as slots and roulette, and the installation of lottery terminals, is illegal competition with their own tribal casinos and an infringement upon their tribal sovereignty and federally recognized regulatory authority.
- The lawsuit by the Cayuga Nation against the New York State Gaming Commission highlights the necessity for states to negotiate compacts with tribes before conducting Class III gaming on reservations, to comply with IGRA and respect tribal self-determination.
- The Cayuga Nation's Council has made it clear that they will not overlook the state's transgressions regarding sports-betting, considering it as a form of Class III gaming.
- The revenue generated from Class III games, including poker, slots, roulette, and casino-games like bingo, is used for life-changing government benefits for Cayuga citizens, while states conducting gaming on tribal land are required by law to provide at least 60% of the net revenue to the tribe.
