Cayuga Nation Tribe in New York files lawsuit against Caesars Sportsbook

The Cayuga Nation in New York has filed a lawsuit in Albany Federal Court against Caesars Sportsbook, alleging the operator conducted unauthorized gaming on Tribal lands and was in “direct violation” of the Indian Gaming Regulatory Act (IGRA). 

Representing the first instance of a Tribe suing a state-licensed operator for running unauthorized mobile wagering within its reservation, Cayuga Nation accused Caesars Sportsbook of accepting wagers from users who were present on Indian lands. 

Such actions are also in violation of the Tribe’s gaming ordinance, while federal and Nation laws allegedly prohibit the type of gaming conducted by Caesars Sportsbook within Cayuga Nation’s reservation. 

According to the lawsuit, Caesars Sportsbook also failed to gain approval from the National Indian Gaming Commission or Secretary of the Interior, both of which are required under IGRA. 

Caesars Sportsbook originally went live in New York at the beginning of 2022, having been one of the four original sports betting operators approved by the New York State Gaming Commission along with FanDuel, DraftKings and BetRivers. 

The Cayuga Nation Tribe also requested a jury trial within the lawsuit and is seeking declaratory relief and money damages from the operator. 

While Caesars handles the first-of-its-kind lawsuit in New York, the operator continues to work through a definitive agreement to be acquired by Fertitta Entertainment in an all-cash transaction valued at approximately $17.6bn.

Specifically, the overall transaction figure consists of an $11.9bn assumption of Caesars' total debts, alongside a $5.7bn acquisition fee, topping the bid previously entered by Icahn Enterprises.

The Caesars Entertainment Board of Directors approved the transaction on May 27 and recommended that affected shareholders approve the merger agreement. Tilman Fertitta originally approached Caesars in 2018 about a potential merger, then submitted an updated proposal earlier this year.