The National Indian Gaming Commission (NIGC) has cautioned tribal operators that they must have complete control over their sports wagering operations.
The Indian Gaming Regulatory Act (IGRA) mandates that tribes bear sole responsibility for all gambling activities on their land.
While collaborating with external entities such as suppliers and commercial operators is customary, these firms can only serve as providers. Any third-party administration of sports betting necessitates specific authorization from the NIGC.
Tribes were alerted to potential issues with sports betting regulations as early as 2020.
The NIGC examines various factors, including contract terms, revenue distribution, and who holds authority, to determine the extent of external company involvement in sports betting management.
The agency scrutinizes agreements between vendors and tribes, ensuring that the contracts do not grant vendors control over the rules of sports betting, which is prohibited by the IGRA.
Exercise caution when encountering agreements with extended durations or disclaimers such as “except as otherwise specified in this document.” These are warning signals.
You can access the complete narrative on the iGB North America online platform.
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