Online gaming posing a threat to Tribes

By Nicole Montesano

Smoke Signals staff writer

Concern is growing about “sweepstakes gaming,” a new type of online gambling that the Indian Gaming Association says violates state and federal law. It is also referred to as prediction markets.

Companies offering sweepstakes games operate under the jurisdiction of the Commodity Futures Trading Commission and offer bets on virtually anything, including sports, politics, world events and random cultural events. Because they operate online, the companies don’t follow state and Tribal regulations and opponents say they pose a threat of increased crime as a result.

In January, Indian Gaming Association Chairman David Bean (Puyallup) and American Gaming Association President William Miller Jr. teamed up to send a joint letter to Congress, asking members to rein in sweepstakes betting.

“These contracts are being offered in flagrant disregard of state laws, Tribal sovereignty, the Commodity Exchange Act and CFTC (Commodity Futures Trading Commission) regulations,” the letter stated. “They mislead consumers into believing that a sports bet is an investment, fail to protect the young and the vulnerable, open the door to money laundering, match fixing and insider trading. They rob state budgets and Tribal finances while simultaneously forcing states and Tribes to expend massive legal resources to defend their sovereignty.”

Spirit Mountain Casino CEO Camille Mercier explained that sweepstakes gaming “operates outside the regulatory framework” that governs Indian Gaming.

“That threatens Tribal sovereignty and the economic engines that many Tribes rely on for their communities, including ours,” Mercier said.

The bets, she said, include “anything from sports to who’s going to be the Democratic nominee. … What’s the top song on weekly top songs on Thursday? You can bet for the Oscars, who's going to be best picture, things with the climate. … But with Tribal gaming, the real threat is sports betting.”

Bean gave a talk on the issue at the 2026 Winter Convention of the Affiliated Tribes of Northwest Indians in early February.

He told the assembled Tribal members that “For most of Indian Country, Indian gaming remains the most successful economic development tool employed by Tribal governments, providing them a consistent and stable source of revenue that Tribes could use to rebuild their economies. To reclaim our language, to reclaim our culture, to reclaim our traditional foods.”

However, Bean said, “Indian Country is grappling … against the so-called sweepstakes gaming, which is actually just another form of illegal gambling, dressed up as free mobile gaming. More than 25 states are now enforcing or pursuing legal action against those illegal sweepstakes companies.”

Tribal Elder Denise Harvey, currently serving as the treasurer of the Indian Gaming Association, said, “It’s been going on for a while and we’ve been trying to get the word out. …

“We’re going to have really rely on Congress, I think, to get things done,” Harvey said, noting that the IGA is asking Tribes and members of the public to tell their congressional and state representatives that sweepstakes gaming must be regulated.

Aside from the negative effect on Tribes, Harvey said, sweepstakes gaming can be potentially harmful to members of the public.

“There’s little consumer protection so if you’re a consumer and you’re tapping into this, you’re on your own,” she said. “There’s nobody out there protecting you.”  

Mercier said the new companies have an unfair advantage.

“I don't think there's anything wrong with innovation and finding new ways to innovate,” she said. “But when it comes to gaming, there's regulations and the Indian Gaming Regulatory Act talks about what those regulations are and it doesn't feel like a fair and equitable market.”

Bean raised a similar point at ATNI, noting that “One of our enduring messages at IGA is to remind our allies that IGRA was designed to rein in and constrict Indian gaming. Of course, our Tribal leaders used the law to transform the gaming industry, using technology to capture market space.”

In their letter to Congress, Bean and Miller wrote that sports betting contracts in predictions markets have “grown exponentially” since being launched a year ago and “have expanded beyond the outcome of single games to include complex parlays and even potential wagers on the collegiate transfer portal. This growth has occurred by exploiting regulatory inaction by the Commodity Futures Trading Commission, which undermines state law and Tribal sovereignty and flies in the face of existing federal laws and regulation intended to protect consumers and the integrity of our nation’s financial markets.”

They wrote that, “We firmly believe that congressional consideration of cryptocurrency market structure legislation provides an important, bipartisan opportunity to prevent sports betting and casino gambling under the guise of ‘event contracts.’”

The issue has implications beyond gaming, they argued.

“The CFTC’s own regulations – adopted pursuant to the Commodity Exchange Act – prohibit event contracts regarding terrorism, assassination, war, gaming or an activity that is unlawful under any state or federal law,” they wrote. “While the gaming industry has focused our efforts on stopping unregulated sports wagering, we have seen a troubling proliferation of other concerning betting categories that seek to capitalize on tragedy, invite manipulation and undermine public trust. Most recently, questions and concerns have been raised regarding contracts tied to the capture of Venezuelan President Nicolas Maduro and ongoing armed conflicts abroad – categories that would never be permitted under state or Tribal law.”

Gambling, Bean and Miller wrote, is “one of the most highly regulated industries in the United States,” and “Licensed gaming operators work with more than 8,400 state and Tribal regulators across the country to ensure our industry has transparency, integrity, strict consumer safeguards and responsible gaming practices. It’s a proven framework that ensures local control and protects players and the public while delivering billions of dollars in community benefits.”

By contrast, “Several CFTC registered prediction market platforms have made self-certified event contracts available to anyone 18 and over, in all 50 states, circumventing state and Tribal gaming laws and denying states and Tribes hundreds of millions of dollars of critically needed revenue for schools, roads and first responders,” they wrote. “The CFTC has not reviewed or approved any of these contracts as more entities enter the market and their offerings get more audacious.”