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Washington State Tribal Sports Betting Challenge Update: Maverick Attempts Fail

In a recent update on December 17, 2024, Maverick Gaming, a card room operator based in Washington State, has faced setbacks in its attempts to challenge the tribal monopoly on sports betting. Despite their efforts, the company’s challenges have hit a roadblock, leading to a dead end in their pursuit.

Legal Battles and Sovereign Rights Issue

Maverick Gaming CEO, Eric Persson, spearheaded the company’s endeavors to overturn the tribal monopoly on sports betting, citing infringement on the Indian Gaming Regulatory Act (IGRA) and the Fifth Amendment’s equal protection clause. The company filed a lawsuit against the state and federal government last year, arguing that Washington’s sports betting laws constituted an unconstitutional monopoly.

After an unsuccessful attempt to challenge the tribes’ exclusivity, Maverick found themselves facing a panel of 9th Circuit court judges who upheld a lower court’s dismissal of the case in February 2023. The company’s investments in acquiring card rooms in Washington, post the US Supreme Court’s ruling on sports betting prohibition in 2018, were made with the hope of commercial sports betting legalization by the legislature. However, their plans were thwarted when lawmakers passed a tribal-only bill in 2020.

The legal battle escalated into a sovereign rights issue when Maverick brought the case to federal court, prompting the Shoalwater Bay Tribe to intervene, seeking the dismissal of the lawsuit. Lower court judge David Estudillo dismissed the suit in February 2023, emphasizing Maverick’s attempt to invalidate tribal gaming compacts, a recognized legal entitlement for tribes.

Challenges in the Legal Arena

Despite Maverick’s appeal, the appellate panel disagreed with their claims that the tribe waived its sovereign immunity by intervening in the suit. The judges highlighted the importance of the tribe’s involvement in litigation concerning their sovereign and economic interests in gaming exclusivity, as outlined in IGRA and tribal-state gaming compacts.

Maverick CEO Eric Persson, a member of the Shoalwater Bay tribe, expressed readiness to escalate the issue to the Supreme Court if necessary, underscoring the company’s determination to challenge the tribal sports betting monopoly in Washington State.

In a complex legal landscape, Maverick Gaming’s attempts to disrupt the tribal monopoly on sports betting have faced significant hurdles, signaling a challenging road ahead for the company in their pursuit of legal recourse.