North Dakota Tribes Request Exclusive Rights to Online Gambling and Sports Betting

Current gaming compacts set for renewal at the end of this year

by - Monday, October 10th, 2022 8:59

North Dakota Gov. Doug Burgum
Gov. Doug Burgum could approve newly amended gaming compacts
Gov. Doug Burgum could approve newly amended gaming compacts

North Dakota’s five Native American tribes have revealed that they are seeking exclusive rights to online gambling in the state.

The news comes a year after state legislators rejected proposals to pass an online gambling proposal that was backed by DraftKings.

According to reports, the tribes have requested that Republican Governor Doug Burgum approve an amendment to the tribal-state compacts which are set to expire at the end of this year. While there is no doubt that the compacts as they stand will be renewed, the introduction on online gambling including sports betting could cause some trouble with lawmakers.

The five tribes — the Mandan, Hidatsa, & Arikara Nation (Three Affiliated Tribes), the Spirit Lake Nation, the Standing Rock Sioux Tribe, the Turtle Mountain Band of Chippewa Indians, and the Sisseton-Wahpeton Oyate Nation — claim that their land-based casinos have been negatively impacted by the introduction of electronic pull tab gambling machines across the state since they were legalized in 2017. The most recent fiscal year saw local gamblers spend over $1.75 billion on the machines.

federally recognized tribes and one Indian community are located (at least partially) within our state. These include .

When DraftKings backed legislative proposals last year, the company stated that North Dakotans were already spending around $355 million per year on illegal international sports betting sites and apps with around 138,000 locals using them regularly.

The proposal from the tribes is currently being drafted so there are no indications of what taxes, if any, will be paid to the state from online gambling revenues. However, it has been revealed that the tribes believe that the federal Indian Gaming Regulatory Act gives them the authority to host online gambling across the state once servers are located on tribal lands.

A similar compact agreement between the Seminole Tribe and the state of Florida is currently tied up in the federal courts after a judge ruled that the agreement violated a federal law. It’s unclear whether or not the ongoing litigation in Florida will affect Governor Burgum’s decision on this proposed amendment to North Dakota’s tribal gaming compacts.

 

Image credit: U.S. Army Corps of Engineers / CC BY 2.0

Jenny Tang

An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.