A major blow has been dealt to Maverick Gaming’s legal effort to break Washington’s tribal monopoly on sports betting. The lower court’s decision to dismiss the case, which was made earlier in February 2023, was recently upheld by the Third Circuit Court of Appeals. The Washington-based card room operator’s attempts to contest the state’s 2020 tribal sports betting agreement have been thwarted by this decision.
Maverick Gaming’s Argument and Legal Grounds
Maverick Gaming, which has invested heavily in acquiring card rooms across Washington, filed the lawsuit in 2022. The company’s case rested on two central arguments. First, it claimed that the state’s compact with tribes infringed on the 10th Amendment and the Equal Protection Clause by granting tribes exclusive rights to offer sports betting. Second, Maverick alleged that the compact violated the Indian Gaming Regulatory Act (IGRA), which allows tribes to offer specific types of gaming only when those games are also available elsewhere in the state. Maverick contended that, since sports betting was not available in non-tribal gaming properties, the law was being misused to grant tribes an unfair advantage.
Despite these arguments, the Third Circuit Court of Appeals sided with the lower court, which had already rejected Maverick’s claims. The decision emphasized that the case touched on complex issues of tribal sovereignty and the rights of federally recognized tribes.
The case became intertwined with matters of tribal sovereignty when Shoalwater Bay Casino, a tribal property, intervened. The tribe argued that Maverick’s suit could not proceed, as it would violate the tribe’s sovereignty. Additionally, the tribe contended that the federal government was not adequately representing its interests in the case. The lower court agreed, acknowledging that tribal and federal interests did not align, and thus dismissed the suit.
The Ninth Circuit Court, which heard the appeal, reinforced the lower court’s position. In its ruling, the court emphasized the importance of tribal gaming compacts and their role in supporting Washington’s tribes and surrounding communities. “The district court correctly concluded that, because of the importance of tribal gaming compacts and the revenue that these compacts provide to Washington’s federally recognized tribes, as well as the long history of tribal gaming and its associated benefits for the tribes and their surrounding communities, Maverick’s suit implicates the Tribe’s legally protected economic and sovereign interests,” the court stated.
Although Maverick Gaming CEO Eric Persson previously indicated a willingness to take the case to the U.S. Supreme Court, this latest ruling greatly weakens the company’s position in challenging the state’s tribal monopoly.
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