Minnesota's Running Aces Racino Expands Casinos in RICO Lawsuit
Running Aces, a Minnesota harness racing track, has filed a federal lawsuit against three more casinos, accusing tribal operators in the state of running illegal games. The casinos added to the suit are Mystic Lake and Little Six, both owned by the Shakopee Mdewakanton Sioux Community.
The original lawsuit, filed last month, targeted Grand Casino Hinckley, Grand Casino Mille Lacs, and Treasure Island Resort, all of which are owned by different tribes. Running Aces claimed these casinos were conducting class III card games, such as Three Card Poker and Ultimate Texas Hold'Em, that are not covered by their tribal-state gaming compacts.
The Grand Casinos and Treasure Island Resort are owned by the Mille Lacs Band of Ojibwe and the Prairie Island Indian Community, respectively. Running Aces believes they are also operating "video games of chance," like slots, which are not allowed under the terms of their compacts.
In an amended complaint filed Tuesday, Running Aces has now included Mystic Lake and Little Six Casinos in the suit. Both these casinos are operated by the Shakopee Mdewakanton Sioux Community.
The federal suit alleges that all five casinos are in violation of the Indian Gaming Regulatory Act (IGRA) and state laws by hosting both class III card games and "video games of chance." However, the tribes are allowed to offer these games under the terms of their compacts. Minnesota was the first state to sign compacts with its federally recognized tribes after the enactment of IGRA in 1988.
Critics argue that lawmakers failed to include revenue-sharing provisions in these compacts, meaning Minnesota is not allowed to renegotiate any of them without the tribes’ approval.
The Minnesota criminal code explicitly prohibits and criminalizes the playing of "electronic video games of chance for any person." This has been well-known to the tribes, as per the lawsuit. When Running Aces applied to the Minnesota Racing Commission for a "modest expansion" of its "dealer assist" table games, the Shakopee Mdewakanton Sioux Community objected, arguing "video games of chance are not permitted in Minnesota."
However, Taro Ito, president and CEO of Running Aces, insists that all the track has ever wanted is "to be treated fairly, compete on a level playing field, take advantage of improvements within the pari-mutuel environment, and operate without fear or being eliminated." He says he is looking forward to a day in court to have the facts determine the outcome.
On the other hand, the Shakopee Mdewakanton Sioux Community has dismissed the Running Aces lawsuit as having "no merit," referring to it as a "desperate stunt to attack the good reputation of tribes and tribal gaming."
The statement from the SMSC asserts that all gaming conducted at Mystic Lake and Little Six Casinos is compliant with tribal law, federal law, and the 1989 gaming compact signed with the state. The SMSC believes Running Aces is attempting to "mislead the public and influence the final stages of the Minnesota Legislature's 2024 session" to prevent the passing of a bill that would grant the tribes a sports betting monopoly.
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Source: www.casino.org
