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The U.S. Supreme Court’s decision last week was a victory for a Texas Indian tribe that has been in a legal battle with the state over the use of electronic bingo games on the tribe’s lands since the 1990s.
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But the decision could have other implications for the gaming landscape in Texas, where Las Vegas Sands-led efforts to legalize commercial casinos have been unsuccessful since the mid-2000s.
The state bordering Texas has Las Vegas-style casinos. Texas gambling advocates have long complained that the state is losing potential tax dollars to casino operators in Oklahoma, Louisiana and New Mexico.
For example, WinStar World Casino and Resort is located in Thackerville, Oklahoma, on Interstate 35, just across the state line from Texas. The casino, operated by the Chickasaw Nation, has the largest casino floor in the US – 698,000 square feet – and draws much of its business from the Dallas-Fort Worth metroplex.
The judge’s 5-4 decision allowed the Tigua Indians of El Paso, officially known as Ysleta del Sur Pueblo, to operate bingo at the El Paso Entertainment Center. Analysts said the decision would also benefit the Alabama-Coushatta tribe, which has been at odds with Texas officials over bingo operations on its reservation, which is an hour’s drive north of Houston.
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A third tribe, the Kickapoo Traditional Tribe, has a bingo-based game at a casino in Eagle Pass, two hours west of San Antonio. But the tribe’s gambling operations are protected under a different federal law.
In a research note written shortly after the Supreme Court’s decision was released, Truist Securities gaming analyst Barry Jonas said the decision would have “broader implications across the industry.”
Jonas said the decision “could further discuss the eventual legalization of (commercial casinos) in Texas.” After that, any Texas casino legalization would affect Louisiana casino operators, particularly Penn National Gaming, Caesars Entertainment and Boyd Gaming.
After reviewing the judges’ opinions, B2 Global Managing Partner Brendan Bosman said he doesn’t expect an immediate change in the gaming landscape in Texas. However, “it may start to force the conversation as locations near El Paso and Houston offer a controlled gaming experience to customers in those areas of the country.”
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Last year, Texas lawmakers rejected a Las Vegas Sands-backed casino gaming proposal. In February, the Texas Tribune reported that the company had launched a political action committee with more than $2 million in funding to support the renewed effort.
Las Vegas Sands senior vice president Andy Abed, who has overseen legislative efforts to legalize casinos in Texas, said the company will work with the Legislature next year to put a casino referendum on the ballot.
Aboud said that the Supreme Court’s decision “gives existing factions certainty” about their gaming operations. He added that the company met with all the tribes except the Kickapoo.
“They are passionate supporters of our initiative,” Abode wrote in a text message. “The Kickapoos didn’t object, just worried about the impact.”
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Boseman said the Supreme Court’s decision adds “another element to the conversation” about casino legalization efforts in Texas.
“It’s a complex issue that includes sports betting for casino games that has been discussed for 20 years and may still not be settled,” he said.
The Supreme Court opinion was written by Justice Neil Gorsuch and joined by Justices Stephen Breyer, Sonia Sotomayor, Elena Kagan and Amy Coney Barrett. Gorsuch based much of the decision on the 1987 Supreme Court case, California v. Cabazon Band of Mission Indians, which dealt with the increasing development of casino-style gaming by North American tribes.
The court’s 6-3 decision in favor of the Cabazon Tribe effectively struck down existing laws restricting gambling on tribal reservations, and led to the creation of the Indian Gambling Settlement Act.
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National Indian Gaming Commission Chairman Sequoyah Simermeyer said in a statement last week that the decision in the Texas case recognized “the importance of the long-standing regulatory framework of Indian gaming.”
In the ruling, Gorsuch rejected Texas’ argument that its bingo laws prohibit the type of game offered by the tribe.
“No one doubts that Texas ‘regulates’ bingo by determining the time, place and manner in which the game may be conducted,” Gorsuch wrote. “The state simply claims that in a sense, its law also ‘forbids’ bingo – when the game does not comply with the state’s time, place and manner regulations. But in this reading, the legal dichotomy between prohibition and regulation collapses.”
Mike Andrews, who oversees the Native American policy group at Washington-based McGuireWoods Consulting, said the court’s decision made the National Indian Gaming Commission the overseer of the tribe’s bingo operations, rather than Texas.
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“This case will have a significant impact in Texas by cutting off the state from any amount of money they could claim if it really is a game,” said Andrews, a former chief counsel to a US Senate committee on the matter. on Indian affairs.
“It also creates a future struggle between the tribe, the state of Texas and the governor’s office regarding Class III (commercial) gaming,” he said.
Las Vegas gaming equipment supplier AGS leases electronic bingo games to the Alabama-Coushatta Tribal Gaming Facility. In 2021, the company says revenue from the game will be between $9 and $10 million.
Jonas said AGS and other gaming equipment suppliers “could see a growth opportunity as Texas tribes may consider expansion following the decision.”
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AGS CEO David Lopez said in a statement that the Supreme Court’s decision “allows Texas tribes to gain economic independence and affirms their rights as federally recognized tribes.”
A patent infringement lawsuit filed by Sightline Payments against Everi Holdings was dismissed earlier this month by a federal judge in Texas, who ruled that the state was an improper venue for the case.
Las Vegas-based Sightline filed a lawsuit on Sept. 30, alleging that financial rival and payment processor Everi infringed on five of the company’s patents related to cashless gaming, including technology that allows players to transfer funds from their financial accounts to digital accounts. Wallet to play games.
US District Court Judge Alan Albright ruled that claims for patent infringement must be brought in the jurisdiction where the defendant resides or has a fixed and established place of business.
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Everi’s corporate and financial technology division offices are located in Las Vegas, while the company maintains its gaming division office in Austin, Texas. The judge did not rule on the merits of the lawsuit, only that Texas was improper venue for the case because Sightline did not allege any violations committed in Texas by any Avery company.
In an emailed statement, a Sightline spokesperson said, “We are committed to vigorously defending our intellectual property and maintaining that this is the appropriate jurisdiction for our claims.”
Sightline said in its original filing that its intellectual property lawyers had examined Everi’s mobile wallet for possible patent infringement, and claimed to have found five infringements.
More than a decade ago, intellectual property disputes over slot machine innovations flooded federal courtrooms. Analysts say it is too early to determine whether legal action over cashless gaming technology will spark similar legal battles. At last year’s World Gaming Expo in Las Vegas, major gaming equipment suppliers presented a variety of new products for cashless and digital payment gaming. The technology, including mobile wallets — smartphone apps that store payment cards and other information in digital format — is being heralded as a game-changer in one of the last cash-dependent industries.
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The Macau government has not imposed a shutdown on its struggling casino industry following the special administrative region’s latest COVID-19 outbreak.
Government checks on more than 600,000 residents came with stay-at-home orders and the closure of most restaurants and other businesses in Macau. China has a “zero-COVID” policy and aims to eliminate any outbreak, regardless of the size of the economy.
Gambling revenue from Macau casinos fell 44% in the first five months of 2022, compared to the same five months in 2021.
“Macau’s gaming revenue is set to hit a new low this year,” Hong Kong-based Jefferies gaming analyst Andrew Li told investors in a research note on Sunday. “We believe that (this action) eliminates any chance of a further relaxation of Macau’s quarantine policy until the summer.”
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The latest outbreak came suddenly and spread quickly with the source still unknown, Macau Chief Executive Ho Ayat Seng, the country’s top political official, said in a statement on the government’s website.
According to Reuters, Macau had reported 21 initial positive cases in the local community as of Sunday afternoon. The lockdown is in effect until Tuesday to allow time for mass testing. People traveling to Macau via Zhuhai-Macao are required to submit proof of a negative PCR test result within 48 hours of arrival.
On Tuesday, a positive case of COVID was found at the Fortuna Macau Hotel, leading to its closure
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