As far as the U.S. Dept. of the Interior (DOI) is concerned, federally recognized tribes can take wagers from consumers not located in Indian Country, as long as it’s legal within a state and the action is consistent with the Indian Gaming Regulatory Act (IGRA) and the Unlawful Internet Gambling Enforcement Act (UIGEA). That is a key takeaway from the draft final regulations released by the DOI’s Bureau of Indian Affairs (BIA) earlier this month.
The interpretation of how the federal government views online sports betting that occurs off Indian lands but flows through tribal servers has been more than a year in the making. The draft rule is one among many that will clarify how tribes can proceed when compacting with states. It also codifies what the BIA has put into practice in recent years.
Sports betting is a form of Class III gaming, which tribes are permitted to compact with states to offer. Class III gaming also includes house-banked card games like blackjack or baccarat, casino games like roulette or craps, qualified slot machines, and parimutuel betting.
Practically speaking, the rule would mean that, in a state like California, should voters eventually legalize online sports betting, bets taken anywhere in the state that flow through tribal servers would be legal. But it also means Florida’s Seminole Tribe still might not be within the bounds of the law.