Burgum's Interior Appt Could Spell Trouble for Tribal iGaming Plans

While the nation's Tribal community controls retail casino gambling access in a lot of states, they have started the process of seeking control over the nation's iGaming industry. They have been able to exert this kind of power via key provisions found in the Indian Gaming Regulatory Act of 1988 (IGRA). In that important piece of legislation, Indian Tribes are permitted to negotiate compacts that allow them certain rights in terms of creating gaming revenue.

It's noteworthy that the Department of the Interior serves as the regulatory body that oversees the regulations established under IGRA. It's noteworthy because North Dakota Governor Doug Burgum has been nominated by President-elect Donald Trump to serve as the country's Secretary of the Interior. That has become an immediate concern among Tribal leaders who know that Burgum has spoken out in the past about his opposition to making it easy for Tribes to take control over internet-based casino gambling.

Burgum's Stance on Tribal-Controlled iGaming Access

In some states, Indian tribes have been employing a process called “hub-and-spoke”, which they have been using to provide online casino gambling around state and federal laws. In the past, Governor Burgum has expressed his concerns over the legality of such a practice., making it something he would likely address if his nomination passes the Senate.

It's important to remember that Gov. Burgum has plenty of experience in negotiating with Indian Tribes over online gambling legislation. He negotiated new gaming compacts with five of the top gaming authorities operating in North Dakota. In each of those negotiations, he spoke bluntly about his concerns over the Hub and Spoke approach.

In 2022, Burgum issued a press release that spoke of his opposition to this practice. He stated:

“While we understand and appreciate the desire by some of the tribes to extend online gaming beyond their reservation boundaries, a clear legal path does not exist for the governor to grant such a broad expansion of gaming in the compact.”

If the ability to offer Hub and Spoke was removed, Tribal leadership would be left with trying to get legislation passed that would allow them to control traditional iGaming activities. That's not an attractive option given the opposition Tribal concerns have received in many states that have attempted to pass such legislation.

What is Hub and Spoke?

To understand why the battle starts with addressing the Hub and Spoke issue, it's necessary to define exactly what that represents. Remember, Indian compacts only allow for gambling access on Indian land.

In the Hub and Spoke model, servers on Indian land would be considered hubs. The spokes are the websites that have been set up to provide online casino gambling. The questionable part of the process is players can access these sites outside of non-Indian-controlled lands. Burgum has expressed concerns that this practice violates the spirit of IGRA.

Assuming that Burgum gets the appointment, expectations are high that he will be addressing the Internet gambling phenomenon and how it will play out under IGRA.