Journal Sentinel – In a move that brought about a tectonic shift in how states can legally offer gambling online, the U.S. Department of Justice issued a simple and discreet ruling that opened the gate for states and operators to offer online poker, bingo, lotteries and casino games to U.S. citizens.
The ruling was timed to be as discreet as possible: issued Friday, Dec. 21, 2011, when many in the industry were either traveling or preparing for the Christmas holiday. The DOJ shifted its position regarding the Wire Act of 1961, which previously barred the transmission of betting data over telecommunications systems that cross state lines. The new ruling clarified the DOJ position that all “prohibitions relate solely to sport-related gambling activities in interstate and foreign commerce.”
In effect, any type of licensed and regulated Internet gaming — except for sports betting — was now legal in the federal government’s eyes. The gate was thrown open for the reintroduction of licensed and regulated online gaming, and several states wasted no time in implementing online state lotteries, poker and bingo slots and other casino games.
As usual, many of the 240 Indian tribes that are engaged in licensed and regulated gaming were left wondering whether the new law included them. Meanwhile, as many as a dozen states began laying the groundwork to allow Internet play, leaving the tribes behind.
Illinois and Minnesota placed their lotteries online; Nevada allowed their brick-and-mortar casinos to offer Internet poker; Delaware recently went live; and New Jersey threw the switch shortly after, enabling Atlantic City casinos to offer online poker and more.
It’s now time for the Indian tribes to step in — alongside states such as New Jersey, Nevada and others — and claim their fair share of the Internet gaming industry. Doing so will provide the most efficient path toward many tribes’ sovereignty and self-sufficiency.
According to the Supreme Court’s decision in the 1987 case, California vs. Cabazon Band of Mission Indians, no state has the authority to regulate or prohibit gaming on Indian lands if the state otherwise allows gaming. Furthermore, the Indian Gaming Regulatory Act of 1988 illustrates that a tribe operates as a distinct sovereign, much like the State of New Jersey or Illinois. Therefore, if a tribe already has entered into a state compact to provide licensed and regulated gaming to the public, the law permits that tribe to place its Class II games (which include bingo and — by some interpretations — poker) online and enable the public to play for real money.
Indian gaming has proven to be one of the most effective means to help tribes attain economic self-sufficiency. By going online, smaller Indian casinos can expand their market share. Meanwhile, tribes without a casino could theoretically launch a virtual casino, thus earning their share of the market without having to build a physical structure.
