Minnesota Racetrack Sues Tribal Casinos Over Legality of Card Games

The battle between Minnesota’s racetracks and tribal nations in the state over gaming rights reached a new level on Tuesday, as the Running Aces horseracing track filed a federal racketeering lawsuit against three tribal casinos.

The lawsuit claims that the casinos have offered card games that are not authorized under the compacts between the tribes and the state of Minnesota.

See also:

• Michigan casinos
• Iowa casinos
• Illinois casinos

State Compacts Limit Permitted Casino Games

In the filing, Running Aces accuses the Grand Casinos in Hinckley and Mille Lacs, as well as Treasure Island Resort & Casino in Welch, of offering prohibited “class III” card games. Under the compacts, Running Aces alleges, the tribal casinos are only allowed to offer slot machines and blackjack. 

Notably, the lawsuit does not name the Mystic Lake casino, operated by the Shakopee Mdewakanton Sioux tribe. While Mystic Lake is the largest casino in the state, it does not offer the games under dispute.

According to the lawsuit, the Grand Casinos have offered blackjack along with other card games such as Three Card Poker and Ultimate Texas Hold’em. The lawsuit says that Treasure Island was also offering prohibited games until October 2023, when the Prairie Island Indian Community, which owns Treasure Island, negotiated an amendment to its compact to allow such games. 

According to Running Aces, the inclusion of these additional games harmed their operations, as the racetrack offers the same variety of table games for its players.

“All that we have ever sought was to be treated fairly, compete on a level playing field, take advantage of improvements within the pari-mutuel environment, and operate without fear of being eliminated,” Running Aces CEO Taro Ito said in a statement. “It is our sincere desire to have our day in court and let the facts determine the outcome.”

The Minnesota Indian Gaming Association told local ABC affiliate KSTP 5 that it learned about the lawsuit from the station, and that it was considering its response.

Lawsuit Raises Heat in Minnesota Sports Betting Battle

The lawsuit is only the latest escalation in an ongoing battle over the future of gambling rights in Minnesota. It comes at a time when lawmakers are considering legalizing sports betting with a bill that would give the tribes exclusive rights to offer sports betting. Under the bill, racetrack casinos would get an upfront payment and annual stipends as compensation for being left out of the industry. 

A similar bill in Maine was recently defeated, with opposition rallying around the fact that existing commercial casinos would be left out of sports betting. 

Earlier this month, the Minnesota Racing Commission approved the installation of up to 500 historical horse racing (HHR) at racetracks in the state. However, legislators reacted harshly to the news, saying that the commission had overstepped its bounds in authorizing a new form of gaming. In addition, some lawmakers felt that the HHR games as currently constituted are little different than slot machines.

“Whether we have sports betting or not, I anticipate making it extremely plain in Minnesota law that the racing commission’s decision will not stand,” House Speaker Melissa Hortman (DFL-Brooklyn Park) said in response to the commission’s announcement. 

File photo of Grand Casino Mille Lacs. (Image: Janet Hostetter/Associated Press/Alamy)