The U.S. District Court of Washington decided all bets are off for Maverick Gaming LLC regarding its challenge to tribal casinos. Last week, Judge David Estudillo dismissed Maverick’s suit, which challenged a state law permitting sports betting at tribal casinos and subsequent amendments to Washington’s tribal compacts effectuating the new bill’s provisions. As grounds for dismissal, the court cited Maverick’s failure to join Shoalwater Tribe — a necessary party — to the lawsuit.
Maverick, a local cardroom and out-of-state-casino operator, alleged the compact amendments violated the Indian Gaming Regulatory Act and the Fifth Amendment’s equal protection clause. The lawsuit named various state and federal officials, including Washington Governor Jay Inslee, Attorney General Bob Ferguson, Washington State Gambling Commission members, and the U.S. Department of the Interior. The lawsuit argued that the state’s 2020 sports gambling law — and subsequent state-entered compacts with tribes — amounted to a “discriminatory tribal gaming monopoly” over sports betting and other gambling activities.
However, the suit failed to name any tribes that were party to the compacts, likely because the doctrine of sovereign immunity protects these tribes from being sued.
In September 2022, Shoalwater Tribe moved to intervene in the case and subsequently filed a motion to dismiss for failure to join a required party. The Shoalwater Tribe argued that it was the actual target of the lawsuit. Finding that Shoalwater had a “legally protected interest and the outcome of th[e] action [could] impair that interest” if the lawsuit excluded Shoalwater, the court dismissed Maverick’s claims. In doing so, the court rejected Maverick’s arguments that the United States could adequately protect Shoalwater’s interests.
Why It Matters
Traditionally, tribes have enjoyed exclusive dominion over gaming activities outside a handful of states that legalize gaming. However, after the Supreme Court’s decision in Murphy v. National Collegiate Athletic Association legalized state sports-betting laws, some states now allow non-tribal participants to enter the industry. However, not all states follow this path, causing hopeful market entrants to resort to litigation and other tactics to accrue market share. However, the court’s dismissal of Maverick’s case demonstrates the latest setback to this effort.
Troutman Pepper State Attorneys General Team
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Ashley Taylor – Co-leader and Firm Vice Chair Ashley is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice. He focuses primarily on federal and state government regulatory and enforcement matters involving state attorneys general, the Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC). Drawing upon his experience as a deputy attorney general, Ashley has developed an extensive consumer practice with regard to the consumer financial services industry. |
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Clay Friedman – Co-leader Clay is a partner in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group and co-leader of the State Attorneys General practice. Informed by nearly a decade in a state attorneys general office, and more than 25 years in private practice, Clay spends much of his time representing clients in singular or multistate regulatory actions. Clay has repeatedly led teams before all 50 state attorneys general and also handles matters with the Federal Trade Commission, the Consumer Financial Protection Bureau, and other local, state and federal agencies. |
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Stephen Piepgrass Stephen represents clients interacting with, and being investigated by, state attorneys general and other enforcement bodies, including the CFPB and FTC, as well as clients involved with litigation, particularly in heavily regulated industries. |
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Michael Yaghi Michael handles high-profile state attorneys general, FTC, and CFPB investigations by advising clients through these complex government inquiries. He assists clients through the entire life cycle of investigations, from regulatory enforcement through formal litigation. |
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Ketan Bhirud As a former government official at the state and federal level, Ketan leverages extensive experience in the public and private sectors to skillfully represent client interests. |
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Avi Schick A former deputy attorney general of New York, Avi applies his experience in bet-the-company matters, representing clients in criminal and civil investigations and enforcement actions before state and federal regulators, prosecutors and enforcement agencies. |
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Chris Carlson Chris represents clients in regulatory, civil and criminal investigations and litigation. In his practice, Chris regularly employs his prior regulatory experience to benefit clients who are interacting with and being investigated by state attorneys general. |
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Natalia Jacobo Natalia is an associate in the firm’s business litigation practice. She recently received her J.D from the University of California, Davis School of Law. |
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Namrata Kang Namrata is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group, based in the Washington, D.C. office. Her work includes advising clients in regulatory investigations and compliance matters, in addition to representing clients in civil litigation matters. |
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Susan Nikdel Susan is an associate in the firm’s Consumer Financial Services Practice Group, and focuses her practice on consumer financial services matters. She has defended several of the nation’s largest and most influential financial institutions in individual and class action litigation involving the Telephone Consumer Protection Act (TCPA), Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and other consumer privacy statutes. Susan also represents banks, fintechs, and financial services companies in connection with regulatory examinations and investigations brought by the CFPB, state attorneys general, and the California Department of Financial Protection and Innovation. |
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Whitney Shephard Whitney is an attorney in the firm’s Regulatory Investigations, Strategy + Enforcement (RISE) Practice Group. She represents clients facing state and federal regulatory investigations and enforcement actions, as well as related civil litigation. |
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Trey Smith Trey is an associate in the firm’s Regulatory Investigations, Strategy + Enforcement practice. His experience includes serving as a summer associate at the firm in 2021. |
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Daniel Waltz An experienced litigator, Daniel advises and represents regional, national and international companies, financial institutions and insurers in all facets of business, complex commercial and insurance coverage litigation. He is committed to working with his clients to find creative solutions to meet their needs. |
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Stephanie Kozol Stephanie is Troutman Pepper’s senior government relations manager in the state attorneys general department. |
