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Washington Gaming Watchdog Ups Cardroom Bet Limits Despite Tribal Protest
By Jeff Osienya Jul 24, 2023 IndustryAfter a tense petition process, Washington State cardroom operators have received regulatory approval to increase their wagering limits by $100, from $300 to $400. Tribal operators who have a higher limit are, however, not too happy with the move.On July 20, the Washington State Gambling Commission (WSGC) approved a petition by Washington cardroom operators to increase bet limits to $400 from $300. Maverick Gaming, the biggest cardroom operator in Washington, initiated a petition to raise the wager limit for cardrooms. Three out of five WSGC Commissioners voted in favor of increasing the bet limit, leading to a victory for non-tribal cardroom operators after months of negotiations.
With that development, this is the first time in 14 years that the wager limit has been raised and the third time since cardrooms were legalized in 1997 – starting with a wagering limit was only $25. While this is a definite win for cardroom operators in the state, the Native American tribes in the state are not pleased with the new developments.
Tribal vs. Commercial Operator Wars
The Commission’s move has received fervent opposition from tribal casino operators whose bet limits are at least $500. Federally recognized tribes argued that according to state law, cardrooms offer ‘social card games’ whose only purpose is increasing sales volume for food and beverages.
It’s worth pointing out that the silent and sometimes not-so-silent war between tribal and non-tribal gaming operators in the US has been raging on for decades. The main points of contention being the Native Tribes’ concern over sovereignty and their counterparts’ complaints of tribal monopoly in the gambling sector.
In Washington State, these past few years have been quite busy for operators and lawmakers alike. Gaming compacts have been renewed and signed with tribes, whereas commercial operators are fighting to remain afloat in a space where they seem at a disadvantage.
Maverick Continues to Wage More Wars Against the Tribes
That said, in January, Maverick Gaming bid to challenge the monopoly enjoyed by tribal casinos, but the petition was overturned in favor of the tribes. For the longest time, Maverick has been at the top of trying to level the playing field by fighting for non-tribal operators to be accorded the same chances as their tribal rivals. Since 2018, the operator has contested tribal-only sports betting in Washington, pushing the state to allow non-tribal operators to offer sports betting at their venues.
In February 2023, Maverick lost a lawsuit that attempted to have the state allow sports betting in other premises other than tribal casinos. The suit, which argued that the Interior Department had acted unlawfully by approving gaming compacts that violated IGRA regulations and the Fifth Amendment’s equal protection clause, was lost to the tribes.
In his 16-page judgment, US District Judge David Estudillo stated in part:
Quote“Such relief cannot be tailored to lessen the prejudice faced by Shoalwater or other absent tribes – Maverick seeks nothing less than a wholesale revocation of the tribes’ ability to operate casino gaming facilities.”
In Estudillo’s view, an attempt to ‘invalidate tribal gaming compacts’ would threaten more than just tribal revenue and contracts; it would also put tribal and non-tribal employment in jeopardy. The battle for some form of equity is one that Maverick CEO Eric Persson is determined to fight at all costs, including taking it all the way to the US Supreme Court. Ironically, Persson, a member of the Shoalwater Bay Indian Nation, is confident that a win is on the horizon.
This is plausible given that Washington is the only state with legalized sports betting that has given tribal casinos total exclusivity in offering sports betting. Tribes in several other states, including Arizona, Michigan, and Connecticut, have given up all or some of their exclusivity, allowing other actors to join the game.
So, after this month’s win, Maverick spokespeople have come out to celebrate, expressing their delight in the apparent victory. According to the Washington State Standard, Persson was among those who gave statements on the verdict saying:
Quote“Today’s vote is evidence of the professional engagement of our entire team with our regulators.”
Implications for the State Revenue
When voting for the increase in cardroom wager limits, Commissioner Julia Patterson admitted that it was a difficult decision considering the arguments for and against the subject. Commissioner Bud Sizemore, who also voted for the cardrooms, stated that it was high time the Commission upheld the initial intention of the Legislature. Sizemore remarked:
Quote“I think it’s very compelling that the Legislature intended for these neighborhood casinos to exist. I believe we have the rationale and legislative authority to make the decision.”
Revenue from tribal casinos is not subject to taxes, while that from commercial or non-tribal gaming is taxed. With this in mind, Maverick has pointed out that a move like this would also be great for the state since it would increase tax revenue.
The contentious move by the Washington Gaming regulator to raise cardroom bet limits has obviously struck some vehement opposition among tribal groups. Nonetheless, as it stands, the non-tribal contenders are definitely going to see a rise in overall revenue. The decision also marks a significant shift in the state concerning tribal monopoly in the gaming industry as well as expanding gaming revenue streams.
As the ramifications of last week’s outcome unfold, it is evident that the interests of cardrooms and tribes will continue to raise challenges for the state’s gaming authorities. Seeing as the casino gaming scene nationwide continues to take shape with regulatory and legislative moves these past months, the road ahead is one we will keep a keen eye on. At the end of the day, an environment where all voices are heard regardless of social standing is sure to shape the future of gambling in Washington State.
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