Cayuga Nation Settles Lawsuit Claims Against Jackpocket

Cayuga Nation Settles Legal Dispute with Jackpocket Over Lottery Operations on Tribal Lands

In a significant development for tribal gaming rights, the Cayuga Nation has reached a partial settlement in its lawsuit against lottery app Jackpocket, resolving some of the claims regarding the unauthorized operation of lottery services within the Cayuga Nation’s reservation. The dispute centers on alleged violations of the Indian Gaming Regulatory Act (IGRA), a federal law designed to protect the sovereignty of Native American tribes in regulating gaming activities on their lands.

The lawsuit, originally filed in April 2024 in the Northern District of New York, named both the New York State Gaming Commission (NYSGC) and Jackpocket as defendants. The Cayuga Nation, a federally recognized tribe with extensive gaming operations, argued that these entities breached federal law by conducting lottery operations within the tribe’s sovereign territory without authorization.

The gaming tribe has now entered into an agreement with Jackpocket, a company recently acquired by DraftKings for $750 million in a deal that closed in May 2024. The settlement is said to be mutually agreeable, with both parties finalizing the terms. However, the lawsuit against the NYSGC and its chair, Brian O’Dwyer, remains active, as the state regulator is not part of this settlement agreement.

A Battle Over Sovereignty and Rights to Gaming Operations

The core of the Cayuga Nation’s lawsuit lies in the protections provided by the IGRA, which grants federally recognized tribes exclusive rights to regulate gaming on their lands. The tribe’s complaint alleges that New York’s lottery operations, specifically those conducted by Jackpocket, infringed upon the Cayuga Nation’s sovereign rights by operating unauthorized gaming services within their reservation. According to the Cayuga Nation, these activities violate the tribe’s federally approved gaming ordinance, which the National Indian Gaming Commission had sanctioned in 2003.

At the heart of the dispute is whether New York’s state-run lottery and mobile gaming services, such as those offered by Jackpocket, are subject to the same regulations outlined by the IGRA. In its lawsuit, the Cayuga Nation argued that these operations undermine the tribe’s ability to control and regulate gaming on its land, posing a threat to the tribe’s economic stability and self-governance.

Cayuga Nation Council member Clint Halftown was vocal about the tribe’s commitment to enforcing its gaming ordinance and holding the state accountable. “The Cayuga Nation has a responsibility to enforce its federally approved gaming ordinance and stop all unlawful gaming within the reservation, whether by the state or private individuals,” Halftown said in an earlier statement.

Jackpocket Settlement and the Remaining Claims

The Cayuga Nation’s decision to settle with Jackpocket marks an important milestone in the case, though the terms of the settlement have yet to be fully disclosed. According to court filings, the agreement is in the process of being finalized and will require approval from the Cayuga Nation’s governing council before it is officially executed.

Notably, the settlement does not affect the tribe’s ongoing legal battle with the NYSGC. The Cayuga Nation remains firm in its stance that the state’s involvement in unauthorized lottery operations within the reservation is a violation of its sovereign rights under federal law. The lawsuit against the state regulator could continue, with further legal proceedings expected in the coming months.

Cayuga Nation’s Broader Gaming Interests

The Cayuga Nation operates four Class II casinos under its gaming ordinance, generating significant revenue to support its citizens. The tribe argues that unregulated lottery operations within its territory threaten its ability to maintain these gaming operations and provide essential services to its members. In response to the state’s actions, the Cayuga Nation initiated legal proceedings after attempts to resolve the issue amicably through discussions in late 2023 and early 2024 failed.

A Settlement, but Legal Challenges Remain

While the Cayuga Nation’s settlement with Jackpocket resolves one aspect of its broader legal dispute, the tribe’s ongoing battle with the New York State Gaming Commission is far from over. The case highlights the complex relationship between state governments and tribal gaming rights, underscoring the importance of respecting tribal sovereignty in the regulation of gaming operations.

As the Cayuga Nation continues to fight for its rights under the IGRA, this lawsuit serves as a reminder of the delicate balance that must be maintained between state interests and federal protections for Native American tribes.