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Cayuga Nation sues Caesars Sportsbook over tribal land bets

Jenny Ortiz-Bolivar
Written by Jenny Ortiz-Bolivar

The Cayuga Nation has launched a federal lawsuit against Caesars Sportsbook, alleging the operator illegally accepted online sports bets from within the tribe’s reservation in New York in breach of the Indian Gaming Regulatory Act (IGRA).

Filed in the US District Court for the Northern District of New York, the lawsuit marks what gaming attorney Daniel Wallach described as the first known case of a Native American tribe suing a state-licensed sportsbook for offering online sports betting on tribal lands.

“New York’s Cayuga Nation Tribe has sued Caesars Sportsbook in Albany federal court for offering online sports betting on the Tribe’s Indian lands in violation of IGRA,” Wallach wrote on LinkedIn. “This is the first known instance of a Tribe suing a state-licensed sportsbook for offering online bets within its Indian lands.”

The IGRA is a U.S. federal law enacted in 1988 to regulate gaming on Native American lands. It establishes rules for tribal gaming operations, protects tribal sovereignty, and requires tribal-state compacts for certain forms of gambling, including most Class III casino-style games.

According to the complaint, the Cayuga Nation alleges Caesars conducted gaming activities within the tribe’s 64,015-acre federally recognised reservation without tribal authorisation, a tribal-state compact, or federal oversight.

“Through Defendant’s application and servers licensed by the New York State Gaming Commission, Defendant accepted wagers placed from physical locations within the Reservation’s boundaries, including wagers from users who are present on Indian lands,” the complaint alleges.

New front in tribal gaming dispute

The lawsuit expands an ongoing legal battle between the Cayuga Nation and New York State over gambling activity on tribal lands.

In July 2025, a federal judge rejected a motion by the New York State Gaming Commission to dismiss a separate Cayuga Nation lawsuit alleging the state was unlawfully conducting Class III gaming activities on tribal land through lottery products and terminals.

The court ruled that IGRA did not prevent the tribe from pursuing its claims in federal court, allowing the case to proceed.

At the time, Cayuga Nation representative Clint Halftown argued that state-operated gaming activities infringed on tribal sovereignty and directly competed with tribal enterprises. The tribe argued that New York had failed to negotiate the tribal-state compact required under federal law before offering certain forms of gambling on reservation land.

Sovereignty and online betting in focus

The new case against Caesars could become an important test of how IGRA applies to mobile sports betting in states where wagering is conducted through licensed online platforms.

The Cayuga Nation contends that bets placed by users physically located on tribal land fall under federal tribal gaming rules. The complaint argues that federal and tribal laws “prohibit the type of gaming conducted by Defendant Caesars within the Nation’s 64,015-acre federally recognised Reservation” and seeks to halt the activity while reinforcing the tribe’s authority over gaming conducted on its lands.

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