RubinBrown Gaming Stats 2013

SIGNIFICANT TRIBAL GAMING EVENTS

Patchak Decision On June 18, 2012, the United States Supreme Court (the Court) provided its most significant blow to tribal gaming since the Carcierci Decision in 2009. In the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians v. Patchak case (Patchak), the Court ruled against the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians (the Tribe), located in central Michigan. In the past, only local municipalities could challenge land-in- trust decisions by the Department of Interior. The Patchak ruling established the precedent that a landowner neighboring land being taken into trust can contest the Department of Interior’s authority to transfer land into trust. Furthermore, under the Administrative Procedure Act, the Department of Interior’s decision to place land into trust is subject to a six-year statute of limitations. While the repercussions of the Court’s decision have not been completely identified, the Court’s ruling will most certainly increase the number of lawsuits filed when land is taken into trust and increase the timeframe in which a casino can be constructed. The effect will be larger investments and longer time frames for the development of casinos on newly acquired trust lands. The North Fork Rancheria Tribe, located 45 miles north of Fresno, California, is already facing increased exposure to lawsuits. In September 2012, California Governor Jerry Brown signed the tribe’s gaming compact, restoring the Tribe’s right to the development of a casino. A near-by landowner subsequently filed a lawsuit under the precedent set in the Patchak case, challenging the government’s authority of taking the land into trust for the future development of a casino.

Online Gaming In December 2011, the Department of Justice reversed its long- standing opinion on the Interstate Wire Act of 1961 (the Act), stating that online wagering transmissions outside of sporting events or contests fall outside the scope of the Act. Since the Department of Justice issued its opinion, there has been a significant push to pass both federal and state regulation legalizing online gaming. On the federal level, Senator Harry Reid of Nevada has been the strongest proponent for new regulations. In 2012, Senator Reid partnered with Senator Jon Kyl of Arizona to draft an internet poker bill. While the bill received a lot of press, it was never formally introduced into the Senate. Entering the 2013 legislative session, Senator Reid’s efforts have been stymied because the bill’s co-sponsor, Senator Kyl, retired from office after deciding not to run for re-election in 2012. At the state level, legalized internet gaming became a reality with Nevada and Delaware legalizing online poker. Even though online gaming was legalized, both states entered 2013 working through the regulation and licensing of future providers. Within Indian Country, tribal casino operations have been lobbying for federal regulations that would treat tribes equally. Throughout 2012, both the National Indian Gaming Association and the National Congress of American Indians held symposiums to discuss the current legislation being considered and lobbied for the equal inclusion of tribes within Senator Reid’s bill. Without the passage of federal regulation, tribes will continue to be restricted from offering online gaming beyond their borders and be forced to negotiate with individual states.

20 | 2013 Commercial & Tribal Gaming Stats