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In April, representatives of more than a dozen tribal nations stood with Arizona Governor Doug Ducey as he signed legislation to bring sports betting to the state.

The deal, years in the making, was inextricably tied to tribal-state gaming compacts, and each constituent got a piece of the action. In exchange for opening the door to commercial sportsbooks, tribes saw their compacts extended for 20 years. The plan allows at least four new tribal casinos and could add thousands of slots and other games in years to come. Of course, along with pro sports teams and racetracks, the tribes will get a slice of the sports betting pie.

The negotiations, while sometimes contentious, ended on a positive note. At the signing ceremony, Gila River Governor Stephen Roe Lew said, “We argued before we agreed. We fought before we found our middle ground. But here we are today, celebrating the most unique unicorn in political life: A genuine win for us all.”

Ducey went one further, calling the agreement “a win-win-win—for the tribes, for the state and for the taxpayers.”

There may be no better definition of a good deal, in which each side asserts its rights, concedes without capitulating and reaches a solution that benefits all parties.

Cards on the Table

Such negotiations don’t always end well. Last year, gaming tribes in Oklahoma found themselves in a protracted battle with Governor Kevin Stitt over the terms of their own gaming agreements, originally signed in 2004 with then Governor Brad Henry.

According to the tribes, their 15-year compacts automatically renewed on January 1. According to Stitt, the compacts expired 24 hours earlier, and were in line to be ratcheted up to a “market rate” fee on Class III games.

Stitt’s position sparked an outcry. Oklahoma Secretary of Native American Affairs Lisa J. Billy resigned, saying the governor was “breaking faith with the tribes.” Attorney General Mike Hunter said Stitt’s position “undermined the credibility and honor of the state when engaging in these sensitive inter-sovereign relations.” Former Governor Brad Henry weighed in, telling Tulsa World, “I’m worried that the dispute may end up in court. That won’t be good at all for the state.”

When the state’s legal fees topped $1.5 million, House Minority Leader Emily Virgin told Stitt to drop it, calling the governor’s compact negotiations “a stimulus package for trial lawyers.” At the height of the pandemic, she said, “The governor is wasting money that could be spent on resources that help our citizens.”

Finally, last July, a federal court ruled for the tribes, but the fight has left a residue of distrust and tension that may not bode well for future negotiations.

Come Together

Arizona and Oklahoma could serve as object lessons in how tribes and states make deals—and in some cases, try to break them.

Seminole officials gather with Florida Governor Ron DeSantis (center) and Hard Rock Chairman Jim Allen (far right) to celebrate the signing of a new tribal-state compact

These lessons are especially timely as scores of compact terms draw to a close and governments rework them in line with new business realities. The first gaming compacts were written in the early 1990s, after the enactment of the Indian Gaming Regulatory Act (IGRA). Back then, the internet wasn’t yet widespread and online betting was unheard of, unimaginable to all but a few future-casters and techno-geeks. As for sports betting, it was limited to Nevada and a handful of jurisdictions grandfathered in before Professional and Amateur Sports Protection Act. Add new competition to new technologies and new ways of betting, and confusion about compacts may be inevitable.

To add to the complexity, though the compacts share certain provisions, each one is as distinct as a thumbprint. Some have low to no revenue-sharing, as in Minnesota, Washington, Wyoming, Oregon and Louisiana. Some are written in perpetuity, as for tribes in Colorado, Connecticut, Idaho, Kansas, Minnesota, Nebraska, Nevada, New York, Oregon, Washington and Wisconsin.

“And a lot depends on where you are in your relationship with the state and the administration,” says Sheila Morago, executive director of the Oklahoma Indian Gaming Association. “If it’s not a good relationship, you’re probably not going to have a good time of it.”

In the Beginning

According to IGRA, a compact is an “intergovernmental agreement… that establishes the terms and conditions for the operation and regulation of the tribe’s Class III gaming activities.”

As described by the Bureau of Indian Affairs (BIA), IGRA was enacted “to provide a statutory basis for the operation of gaming by Indian tribes as a means of promoting tribal economic development, self-sufficiency and strong tribal governments.”

But according to Harry Jackson, gaming attorney with the nationwide law firm Fox Rothschild, IGRA began as an almost patriarchal agency.

“As as a result of the (1987) Cabazon decision, Congress quickly passed IGRA. It was advertised as, ‘Well, we don’t want the Native Americans to be taken advantage of; we need to be there as a watchdog or guardian, because they can’t take care of themselves.’” Tribes were seen almost as wards of the U.S. government (“condescending,” says Jackson) and the feds assumed the role of referee.

“If a state was dragging its feet on a compact or the two sides couldn’t reach an agreement, then the federal government could step in and say, ‘This is how it’s going to be.”

Later, in the wake of Seminole Tribe v. Florida (1996), the federal government took a more hands-off approach.

“They left it to the states to negotiate in good faith according to language of IGRA,” says Jackson. “So we’re seeing a lot of back and forth—‘Let’s reopen the compact, let’s change some things.’ In Oklahoma, they asked the tribes to contribute more in gambling revenue, which caused a lot of friction between tribal leaders and the state.

“Any time you go to reopen a compact or change it, everybody’s got white knuckles on the dashboard. They’re asking, ‘What else are they going to change? What will they take away in order to give us something new?’

“It’s a very thorny issue,” says Jackson, “and a very personal one, because of the history. A lot of these tribes are on their original land, but they remember what happened when they were removed from that land—or put there.”

Big Business

While tribal gaming enterprises may be big businesses, they are also family businesses, says Morago.

“Gaming is the lifeblood of tribal economies. A lot of tribes have branched out into other industries, which is great, but some just don’t have the option, and this is how their governments run. The infrastructure, the scholarships, the health care—all of it resulted from money from tribal gaming.”

In many cases, gaming tribes make major investments for brief original compact terms, sometimes less than a decade, “and they need to have some certainty” about their standing, about exclusivity and renewals, “especially if they’re going to banks for loans.”

The tribes also wield great power, and bring it to bear at the bargaining table. In 2018, the Seminole Tribe stopped its $350 million annual payments to Florida in a dispute over banked card games at parimutuels. After a two-year stalemate, the tribe and Governor Ron DeSantis hammered out a new 30-year deal, signed in April and pending approval by the state and the Interior Department.

In exchange for dropping its claims against the parimutuels, the tribe can introduce craps and roulette at its seven casinos and offer sports betting. According to the website CardsChat.com, in a “technical win” for parimutuels, those venues can also offer sports bets, but must give a cut of revenues to the tribe. For the state, it guarantees payments of $1 billion over the next five years, escalating from there.

It’s not a done deal yet. Confusion still reigns about mobile sports betting as it conforms to IGRA, and the Florida proposal is already under challenge.

“I don’t think it even passes the sniff test,” says John Sowinski, president of No Casinos and promoter of Amendment 3, which requires voter approval for any gaming expansion in Florida. “The file server being on tribal land does not make the gambling on tribal land. If you accept that premise, then the tribe could operate casinos all over the state as long as the random number generators in the slot machines were on tribal lands.”

Tribes in other states, like California, have resisted mobile sports betting until the question is settled.

Originally, says Jackson, “It was easy to define Class III gaming as the casino experience with table games, but even then, there were disputes as to what falls under Class III. That’s the argument we’re seeing now as tribes and states go to the negotiating table to talk sports betting. How are the states defining it? Where does Class III gaming stop under IGRA? It’s not a settled thing yet.

“It needs to be addressed, to put sports betting in a clean box. Right now, it doesn’t quite fit.”

One thing seems sure: tribes have no desire to reopen and amend IGRA itself, says Morago.

“Mobile, iGaming, esports—all these technologies are coming online, but it’s a matter of going in and making little surgical tweaks to compacts, because no one want to renegotiate everything. There’s an overriding federal law we have to abide by. It has to be updated, but people are wary of opening up IGRA. It could turn into a Pandora’s box.

“IGRA isn’t a perfect piece of legislation by any means,” she says, “but tribes are learning to work within the boundaries that gave them primacy. Some legislators may want to go through and take some of that primacy away and add new restrictions.”

Let’s Make A Deal

Mashantucket Pequot Chairman Rodney Butler (r.) with Connecticut Governor Ned Lamont worked together on a new tribal-state gaming compact to bring iGaming and mobile sportsbooks to the state

In March, Connecticut Governor Ned Lamont and the Mashantucket Pequot and Mohegan tribes revised their gaming compacts for the next 10 years to include sports betting and online gaming, pending approval by the state and BIA.

The complex deal adds retail and mobile sportsbooks and iGaming, with a tax on GGR of 18 percent for five years that rises to 20 percent for the last five years. Sports betting will be taxed at 13.75 percent.

Discussing the deal later on a podcast with Victor Rocha of Pechanga.net, Chairman Rodney Butler of the Mashantucket Pequot Nation said he would “love to push back” on some parts of the compact deal, but was motivated to get the deal done.

“We could be at the table for five more years, but at end of day, we have to look at what’s best for our nation. We have 5,000 employees we’re concerned about, and whatever impacts them positively impacts us positively. We could have continued to haggle over the details get a few more points on the tax rate and revenue-share on sports betting, but all in all, it’s a good deal, and we’re pleased enough to come out and support it with the Mohegans.”

That’s the mark of a good deal, Butler said, “when nobody walks away completely happy.”

Pressure eases off the brake pedal. Slowly but surely, the pandemic that shut down gaming has less force.

Operators await business beyond Covid-19. And tribal properties, like their commercial colleagues, will benefit from those who innovate ahead of the post-pandemic curve.

Casinos are already placing social distances and guest separation into their plans to gain an edge for the future. Sharp vendors serving tribal gaming interests are both anticipating and reacting to market needs.

“The reality is that gaming is one of the most resilient industries on the planet,” says Nick Schoenfeldt, vice president and principal of Thalden Boyd Emery Architects. “We’ve weathered social, economic and health crises for years and come out stronger and more profitable.

“The current pandemic will eventually come to an end, and many casinos will return as though 2020 never happened.”

Building Outside the Box

HBG Design has a long, storied presence in tribal gaming. Principal Dike Bacon says the company has worked with more than 40 sovereign nations across the United States, bringing their strategic visions to life through the design of award-winning casino resorts.

HBG’s SafeBet gaming pods offer social distancing and a patentpending UVC Breathing Zone that kills 99.99 percent of airborne pathogens

Along that journey, the company took a game-changing side trip in the past couple of years. Its innovative SafeBet product allows properties to continue to operate amid Covid-19. The concept of SafeBet can also spread to other industries.

“As creative people and problem-solvers, it’s in our DNA to design with the intention of making places and spaces better,” says Bacon. “That’s fueled the creation of our SafeBet slot pods, which HBG designed in 2020 and is patenting. We’re now manufacturing SafeBet through our partnership with KGM Gaming.”

The pods offer social distancing “with additional layers of comfort and personal space,” says Bacon. “SafeBet literally creates the safest seat on the gaming floor, with the only personalized ventilation system available in the market today.” Its patent-pending UVC Breathing Zone kills 99.99 percent of airborne pathogens and bacteria.

“Think of it like this: As a guest in a casino, playing at a slot machine that has the SafeBet product, you essentially have a personal ventilation cleaning system working for you and killing pathogens in the air immediately around the you while you play,” says Bacon. “It’s a win-win for owners and their guest… What we’re doing with SafeBet is providing a path for owners to maximize floor space and push revenues higher, while offering the kind of protection that provides guests with peace of mind.”

The breakthrough product was part of HBG’s multiple-faceted approach to the crippling pandemic.

“One of the biggest takeaways from Covid in our industry is the focus on making cleanliness, safety and wellness top priorities,” Bacon says. “The perception of cleanliness is paramount in bolstering a positive feeling of safety and well-being among guests, but the measures operators take have to work.”

Bacon says current design projects show better utilization of interior and exterior spaces, blurring the lines to bring the outdoors in and the indoors out. This is especially true in food and beverage, in which seating capacities can be increased with little to no new square footage. Designers are rethinking how to seat and serve guests to achieve social distancing, and compartmentalizing spaces in a natural, fluid manner.

“We’ve been analyzing and re-purposing existing space—often square footage that’s underutilized or, in some instances, unused, in the casino,” says Bacon. “We’re weaving design- and facility-planning principles with emerging technologies to develop responsive design solutions.”

Beyond safety breakthroughs, HBG retains a presence as an industry heavy-hitter, ranking among the Top 5 hospitality design firms in the country for more than a decade, according to Bacon.

“We’re one of only a handful of design firms working in the tribal sector that’s laser-focused on hospitality and entertainment design as the core of what we do, and that’s a real differentiator,” Bacon says.

Many of the firm’s Indian gaming clients continued to pursue projects during and despite Covid-19, both on the design side and in new construction. The prevailing attitude was that the calendar doesn’t stop, and lost time is lost revenue.

Two projects opened recently: the 1.2 million-square-foot Desert Diamond West Valley Resort in Glendale, Arizona, and the $180 million, 459-room, Four Diamond hotel expansion at Cache Creek Casino Resort in Brooks, California, outside Sacramento.

In addition to gaming, both projects include a diverse range of non-gaming amenities targeted to each region’s specific market and guest demographic.

An Optimistic Outlook

Thalden Boyd Emery Architects views the pandemic as an obstacle to be overcome, and Schoenfeldt expresses one of the most optimistic viewpoints in the gaming industry.

“The Covid pandemic completely shook the casino gaming and hospitality industry,” he says. “Almost overnight, the global mindset became laser-focused on sanitization and separation. And when the doors finally started to open, we noticed a lot of changes.”

Completion of the Desert Diamond West Casino in Glendale, Arizona proceeded despite the Covid-19 pandemic

Some of those changes will likely remain. TBE expects that many casinos will retain Plexiglas as a permanent, decorative/advertising element between machines and in other select areas. Hand-sanitizing stations will probably stick around, too.

“As for the amenities, the pandemic really opened the industry’s eyes to the reality of F&B,” Schoenfeldt says. “While it’s still an important amenity in maintaining a balanced offering, we see the food-hall concept taking on a more dominant position over the traditional buffet.”

With reduced capacity on casino floors, some operators have temporarily converted ballrooms, F&B areas and neutral spaces to gaming. “Going forward, we’re already seeing casinos looking to allocate more square footage to the game floor, creating a less crowded feel compared to the pre-Covid times, but not so much that players feel isolated,” says Schoenfeldt.

During the pandemic year, TBE continued to service three construction projects with three of its most loyal clients, and within the last eight months completed and opened three tribal projects. The most recent was a $97 million project for the Tulalip Tribes in Tulalip, Washington.

The Quil Ceda Creek Casino spans more than 120,000 square feet with 1,500 gaming machines (an increase of 500 machines), 16 table games (with three new tables added), an expanded entertainment lounge, three full-service bars, a full-service restaurant, a food hall with multiple cooked-to-order food venues and a state-of-the-art smoke-management system.

A new six-story parking garage includes more than 1,000 parking stalls, along with elevators and enhanced accessibility for guests with disabilities. Additional surface parking and charging stations for electric vehicles are conveniently located near the casino entrances. The new Quil Ceda Creek Casino has approximately 700 more parking spaces than the previous location.

And last October, TBE unfurled the $125 million We-Ko-Pa Casino Resort in Fort McDowell, Arizona for the Fort McDowell Yavapai Nation. The new resort raised the bar for gaming venues in the Northeast Valley. It offers a full complement of slot machines, tables, bingo and gaming amenities, along with a separate poker room and two blackjack pits.

The new casino also includes a wide variety of dining establishments, event venues, Native American design elements and other features designed to maximize the comfort, safety and enjoyment of all who visit the casino or stay at the adjoining 246-room AAA Four Diamond hotel.

All gaming areas, hotel rooms and public spaces, dining facilities and entertainment venues are 100 percent smoke-free (there are four outdoor lounges designated for smokers).

The facility also is in full compliance with Covid-19 mandates. The virus was unknown at the time construction began, but the Yavapai Nation has made “substantial” investment in integrating features that bring it into compliance with medical safety standards. The 166,341-square-foot casino, designed for 900 slot machines, opened with 700 divided by Plexiglas screens.

Last September, TBE completed a $26.4 million project at the Wildhorse Resort & Casino for the Confederated Tribes of the Umatilla Indian Reservation in Pendleton, Oregon.

The new family entertainment center at Wildhorse Resort brings with it 24 lanes of bowling, a new three-venue food court, and a state-of-the-art arcade. The capstone of the addition, the bowling center, has room for open play and league play as well as eight “boutique” lanes that can be reserved for parties and private events.

These two areas are separated by a soaring clearstory space allowing an abundance of sunlight into the space. Custom light fixtures recall the thundering hooves of wild herds of horses that traversed these high plains centuries ago. Geometric patterns and colors represent the unique character of the history of the indigenous peoples and organic rolling hills of the region.

Out In Front of Change

“Even before Covid, the casino floor was changing, becoming less congested and more flexible,” says John Hinton, director of Native American projects for Bergman Walls Associates.

“This shift was catalyzed by the advent of interactive and alternative gaming that was already changing the gaming experience, and the way casino floor design was being approached.”

The 120,000-square-foot Quil Ceda Creek Casino in Tulalip, Washington includes more than with 1,500 gaming machines, 16 table games and a state-of-the-art smoke management system

As a result, prior to the virus, some operators were already preparing to reconfigure their floors. They adapted to “the short-term pandemic reality,” says Hinton, “while at the same time thinking about post-pandemic renovations in an already-changing gaming landscape.

“The need for social distancing has helped our clients and us see possibilities in their existing venues,” he adds. “For example, to create more space on gaming floors, currently underutilized spaces such as event and conference rooms now contain slot machines and gaming tables. This has our clients thinking about how they can make spaces more flexible and scalable in the future.”

The approach is the same for both tribal and non-tribal casino operators. It’s about creating distance to keep customers safe, while maintaining their connection to the guest experience.

Hinton says operators can’t have Plexiglas dividers between patrons indefinitely, but can reimagine floor layouts for machines and game tables and move some to underutilized space elsewhere.

Reducing touchpoints is vital. Personal cellphones can be used for everything from room check-in and keyless entry to automated food ordering and even as a TV remote control in guest rooms. Buffets will be staffed with servers instead of being self-serve, or else be replaced with food halls with distanced communal dining.

Many of these changes were being considered or were already under way when the pandemic hit; the outbreak naturally hastened their implementation. Based on their locations, some tribal casinos have the flexibility to add more outdoor dining, entertainment and recreation opportunities, offering socially distanced options that attract a wider variety of audiences.

Here are some of BWA’s recent noteworthy projects:

Morongo Casino Resort & Spa, Cabazon, California (Morongo Band of Cahuilla Mission Indians): This renovation project included a 65,000-square-foot expansion that increased the size of the gaming floor by 30 percent, added new slots and table games and included a number of new bars and restaurants. BWA completed the project in conjunction with Kenneth Ussenko Design of Santa Ana, California.

Swinomish Casino & Lodge, Anacortes, Washington (Swinomish Tribe): This project involved remodeling and expanding the existing hotel tower as well as the casino floor to improve sightlines and gaming options. It added convention space and new retail and dining options. BWA also added a larger kitchen and increased back-of-house areas. In its design, BWA also took advantage of the breathtaking views of the Swinomish Channel to the east and Padilla Bay, San Juan Islands and Mount Baker to the north.

Apache Casino Hotel, Lawton, Oklahoma (Fort Sill Apache Tribe): This renovation project involved enclosing the gaming tent with a permanent structure, adding restaurants and a players club, and creating a master plan in which the design team identified ways to improve the guest experience and define the phases of work. BWA also designed a new 53,000-square-foot event center that features themes inspired by tribal history and the local countryside. The center can be configured as a 1,200-seat showroom, ensuring no guest is more than 100 feet from the stage, and is easily divisible for smaller events. Four large VIP suites provide additional functionality.

Snoqualmie Casino, King County, Washington (Snoqualmie Tribe): BWA worked with the tribe to realize its vision of creating a great lodge with a fun and exciting atmosphere. Along with 11,500 square feet of convention space, the property features a 50,000-square-foot casino and a 1,000-square-foot retail quarter with a Northwest flavor both inside and out.

Besides safety and innovation, BWA has an eye toward the next generation of customers, says Hinton.

“Casino gaming has always been challenged to find ways to attract different and younger patrons; Covid both gave facility operators the chance to step back and examine their long-term plans, and accelerated the process for putting plans into place,” he says.

The new event center at the Apache Casino Hotel in Lawton, Oklahoma is easily divisible for large and small gatherings, with social distancing easily managed

For both tribal and non-tribal gaming clients, sports betting was already impacting facility design pre-Covid. The sports bettor is a different customer than the traditional casino patron, so there must be amenities that draw them to your venue.

Sports-betting lounges have interactive kiosks, wide screens for watching the game and communal spaces to gather with other bettors. Even though the wagers can be placed remotely, these are places guests want to be. It’s also a great mechanism for getting younger patrons to a venue, so they can see what else is on offer, plan a spa trip, see a show or have dinner.

In terms of entertainment spaces, tribal clients are looking to smaller performing arts venues that can attract more affordable regional and mid-level talent. Having to sell out a venue to cover the costs of big-name entertainers is more challenging now, and may stay that way for the foreseeable future.

Outdoor entertainment spaces such as bars, nightclubs and poolside activities are helping to mitigate short-term indoor gathering concerns, while creating some appealing long-term options at the same time.

Welcome to the Show

Forget about the inefficiencies of large firms and the constraints of small ones. It’s time for creativity on a grand scale.

That’s the theme emanating from Campbell House founder Beth Campbell, who launched her own design company in January.

As the former CEO of Wilson Associates, a top global interior design firm, Campbell has overseen the design of iconic projects for more than 30 years. Campbell House is a full-service interior design firm with studios in Las Vegas, Los Angeles, Dallas and New York.

“We’re a brand-new company, made up of experienced design veterans,” says Jennie Bowman, chief marketing officer. According to the company’s website, Campbell House is “focused on high-engagement design solutions for hospitality, gaming, entertainment, restaurants and corporate workplace,” Campbell House “openly and unapologetically puts their people and culture first. Bringing to bear the best talent to support their client’s needs, regardless of location, we deliver engagement design in an era of meaning and purpose.”

Creative Director and Principal Joyce Lynn Lagula says the company serves an industry that’s already flexible.

“Casinos typically work on the model of a flexible gaming floor anyway, so the pandemic hasn’t fundamentally changed or dictated any key aspect of how they’re designed,” she observes. “Safety measures that were put in place for them during the pandemic, such as acrylic dividers and every-other-slot-machine-on could be considered temporary and a setup in survival mode.

“But there’s been some positive feedback on certain types of slot layouts from guests and operators alike, where appropriate distance can be achieved while maintaining a great gaming environment. For example, take a three- or five-slot carousel setup, as opposed to four to six machines in a row.”

Lagula believes the major difference and advantage for tribal casinos over non-tribal properties is their reach and approachability for guests during a cautious time like the pandemic. Tribal casinos have more a more regional base; when trust is paramount, their direct connection to their communities comes into play. Design can help support that.

According to Lagula, some approaches that stemmed from the pandemic in the gaming industry overall are really focused on integrating technology into the experience, whether it’s through QR-code marketing as a draw for patrons or creating spaces that, while differently configured, still achieve connect with guests.

“That’s what we lean on as designers, creating stronger connections with guests and the space through powerful design,” says Lagula. “That’s something the pandemic took away from us in 2020.”

For some in the industry, the pandemic left a new mark. For others, it merely brought an existing mark into clear focus. Either way, the race is on to bring tribal communities and gaming as a whole back to full speed.

Since the repeal of PASPA (Professional and Amateur Sports Protection Act) in May 2018 through the Supreme Court decision in Murphy v. NCAA, United States markets have pushed forward to legalize sports betting.

Thirty U.S. jurisdictions have legalized sports betting and more than 22 of those are now operational. Many of the remaining states provide strong opportunities for tribal communities to take advantage of this expansion.

While opportunity abounds for tribes in sports betting, it’s about getting it right, not speed to market. One of the main reasons PASPA was overturned was because of states’ rights issues. Each state will take its own approach to how sports betting may fit into its existing gaming product. In some cases, sports betting might not be incorporated at all.

Just as each state is taking its own approach, so should tribal nations as they craft a market to meet the needs of their leadership and communities.

Many of the states still considering sports betting are dominated by tribal interests. These tribal communities and the states in which they operate are taking a thoughtful view to how sports betting will work best for their communities. It may be land-based only or also include mobile. But offering mobile wagering off-reservation brings different dynamics to the conversation. Commercial or government interests in the state add other dynamics on how to coordinate diverse interests.

Models to Road Maps

States that have already entered the sports betting arena can provide a potential blueprint to those in the middle of or starting those conversations.

New Mexico was the first state to move forward with tribal sports betting. Other states have since joined in, including Arizona, Iowa, Mississippi, New York, North Carolina, Oregon, South Dakota and Washington. As the first to market, the tribes of New Mexico relied on existing compact language, which allowed all forms of Class III gaming as its instant access point to the market.

Washington’s Tulalip Tribe will be the first tribe in that state to open a sportsbook after a united tribal effort kept sports betting in Indian Country.

One of the biggest issues facing tribes is to decide the method by which sports betting will work within their community and, to a larger extent, throughout the state. This may include a land-based-only model, with or without on-reservation mobile wagering. Tribes may have an interest in statewide mobile wagering, but challenges may exist in the market before this can occur. In-between models have been and continue to be considered. In some cases, the state lottery may want to be a stakeholder, as seen in jurisdictions such as Oregon. Commercial interests may come into play, as in South Dakota or the existing market in Mississippi that offer land-based options through tribal entities.

Washington provides a strong model for other states to follow. It took a proactive plan early after PASPA was repealed. Getting one tribe on the page to push forward with a singular concept can be a feat in itself. The task of getting several tribes in the same state on the same page is even more daunting.

Washington set out early, proceeding collectively to educate legislators on sports betting and why a tribal model was ideal for the Evergreen State. In the first-year post PASPA, some outsiders felt that the legislature was not pushing forward. But it was an educational year, to talk about why the tribes’ reservation-based model was the best one for the state and the communities that tribes support, both on and off the reservation.

While sports betting passed in the second year, Washington tribes faced strong opposition from the card-room entities that wanted a seat at the table. The card rooms went in heavy-handed in their effort and lost ground quickly with legislators. This stemmed from a lack of understanding, not only of the power that the tribes had within the state and the communities in which they operate, but also how they dealt with the legislature. Rule one in lobbying any bill is never to insult, argue or heavy-hand a member of the body; the card rooms failed on all of those efforts.

Also, the regulatory structure for card rooms, like those in California, is not at the same level as that of the tribes and does not work with the state’s Gambling Commission.

Sports betting is still getting ready to launch in Washington, demonstrating to tribes elsewhere that it may take a couple of years to get it across the finish line. Education is the key component from the start, and here tribes can both individually and collectively lead the conversation with stakeholders that, first and foremost, may not be familiar with their contributions to the community.

First, the tribes in Washington educated themselves to get up to speed on the best model for them—a reservation-based focus—then proactively communicated that message to get sports betting across the finish line legislatively.

Tribal-Commercial Combo

Michigan provides another strong example of tribes jumping into the sports-betting market. The combination of tribal and commercial casino interests caused an interesting dynamic on how sports betting could coexist between these two entities.

In what’s viewed as model legislation, leaders in the Michigan legislature worked through the differences to offer mobile sports betting statewide to all stakeholders. This required tribes to work through issues with the Indian Gaming Regulatory Act (IGRA) for what can be approved on-reservation as well as how they would interact with the state for wagers being placed off-reservation and how payments would occur to the state.

Due to the leadership of the tribes, the commercial casinos and the sponsors of the bill, Michigan became a model that allows all parties to compete effectively. While the tribal communities had their own paths to determine their best solutions to operate sports betting, it allowed those regulated entities to work together to craft a sports betting market that continues to generate strong revenue for both the state and for the operators in the market.

Tribes have taken the approach of either partnering with a specific operator—such as DraftKings’ partnership with Bay Mills Casino—or branding a sports-betting operation based on their casino brand, as seen with Firekeepers. Both provide examples to other tribes on how to either work with a partner or forge their own path.

Picking the Right Dance Partner

Florida Governor Ron DeSantis signed a compact with Seminole Chairman Marcellus Osceola Jr. to bring sports betting controlled by the Seminoles to the Sunshine State.

After tribal communities determine the best path forward, picking the best operational model is key. Any deal will have to go through approval with IGRA, which needs to be considered early in the process to work through the terms of any deal on sports betting. It’s vital to ensure the deal that is struck is one that has the best terms for the long-term path for the tribe, the current and future market and the potential partner.

The three buckets that typically exist are the outside partnership, in which the operator of the sportsbook assumes all the risk; the tribe operating its own sportsbook; or a hybrid of these models.

Many tribes are going through an RFP process to consider a wider range of options for the best opportunity to proceed forward, and this can help sway the decision into one of the three buckets above. This process allows the tribal community to determine its best partner, as well as compare different methods of operation.

Most importantly, it lets tribes craft the best opportunity for their communities to press forward with sports betting in terms of revenue, operations and, most importantly, the fit to their current framework and potential partnership. It’s important in any partnership that an outside sports betting operator understand the dynamics of the tribal community and its current operations.

Other Tribal Scenarios

Two states provide other scenarios for tribes: California and Florida.

It’s well-documented that any gaming decisions in Florida run through Hollywood (Florida), and to a lesser extent, Orlando (because of Disney), before they run through Tallahassee.

The same can be said in California, which has for years faced challenges when tribal communities are not on board with a concept or included properly in the discussion. This happened last year with the legislature, when some stakeholders tried to circumvent the tribes with their own version of a sports-betting draft. California’s tribes have since come together with a ballot measure to go before voters for a tribal-controlled, reservation-based sports betting model. The lesson for outside groups is that tribal communities’ political clout should not be underestimated. Online gaming in the California market also failed 10 years ago due to opposition from tribal communities.

Most of the remaining states continue to debate how to craft the ideal sports-betting market. As sports betting continues to evolve, other players in the market are trying to add to the conversation as well, including sports teams that believe they should be represented, as was the case with the recent passage of legislation in Arizona.

While this model still needs to be operationalized and brought to market, some stakeholders question why the tribes did not have equal standing in the number of licenses between sports teams and the number of tribes for statewide mobile access.

While major tribal states like Minnesota, Wisconsin, Oklahoma and others are still working their way into the sports betting space, the table is set for a strong push for tribal sports betting in the next round of legal states. Tribes are looking out for their best interests, first agreeing within their own communities, then working with their partners to craft the best market for them.

As has been said before, in any form of gaming expansion, there’s one chance to do it right. Sports betting is the current push forward, and tribes have every right to develop the best opportunity to get it right out of the gate.

When Covid-19 came to the U.S. in March 2020, states around the country ordered all but essential businesses to shut down to minimize the spread of the virus. Where possible, many companies let staff work from home.

Among the sectors hardest hit by the closures was hospitality, a service industry not considered essential to the public, an industry where most employees cannot work at home.

Casino resorts closed from Las Vegas to Mississippi to Atlantic City and to the far reaches of Indian Country. Gaming and non-gaming revenues tumbled for the two to three months the industry was dark. There were no casinos, no restaurants, no retail sportsbooks and no Luke Bryan singing in the showroom.

There was no money coming in, outside of those few properties with online sports betting and the even fewer offering online casinos.

Turning the Tide

Turning Stone Resort Casino, in upstate New York, wasn’t authorized to offer either virtual option. The resort suspended operations from May 16 to June 10, 2020, a few days shy of three months. It could have ignored the order from Governor Andrew Cuomo to close down; Turning Stone lies on sovereign land owned by the Oneida Indian Nation, and thus is not subject to the edicts coming out of Albany.

The resort could have kept the slot machines humming, the hotel accommodating guests, the restaurants serving meals. But it didn’t.

“It’s worth noting we actually were the first casino in the state to announce we would be temporarily closing… before the commercial casinos,” says Joel Barkin, vice president of communications for the Oneida Indian Nation. During that time, the lone tribal revenue source centered on the two convenience store chains it owns, both classified as essential businesses.

Turning Stone was not unique.

“As recognized by the U.S. Constitution and multiple individual treaties with the federal government, tribal governments are separate sovereigns from state governments,” says Matthew Morgan, chairman of the Oklahoma Indian Gaming Association. State governments have no authority, except that which is granted by the tribes, on reservation land.

Like Turning Stone, Oklahoma’s tribal governments issued emergency health declarations and closed prior to state orders to do so, Morgan says. By March 23, every tribal casino in Oklahoma had shut down.

“While we were not required to follow the governor’s executive orders, given the state of the pandemic at the time, we voluntarily closed on March 16,” says Mike Bean, CEO of Saginaw Chippewa Gaming Enterprises, which operates Soaring Eagle Casino & Resort, Saganing Eagles Landing Casino & Hotel and the Slot Palace & Bingo Hall, all in Michigan. “We canceled our large-scale summer concert series that included Luke Bryan, Keith Urban and Miranda Lambert.”

Tribal property after tribal property shut down, large and small.

Full Stop

The loss of casino revenue stood out, but income from ancillary activities also ground to a standstill.

“Other areas that saw challenges in 2020, with impacts still being felt today, were entertainment and meetings and conventions,” says Jeff Hamilton, president and general manager of Mohegan Sun in Connecticut, one of the country’s largest casino resorts. Mohegan Sun closed March 17, 2020, and reopened June 1.

“Dipping into reserves put a strain on any business, but tribal leaders’ commitment to their employees and communities was their highest priority.” —Matthew Morgan, chairman of the Oklahoma Indian Gaming Association

Bean says the two-and-a-half month closure had about a 20 percent adverse impact on revenue for the year.

“We mitigated with expense reductions that unfortunately included furloughing most team members,” Bean says.

During the closures, many tribal casino properties in Oklahoma still paid employees to keep them solvent.

“This is just one more way tribes have shown their commitment and compassion for their citizens and their employees,” Morgan says. “Many tribes took on that responsibility by using tribal reserve funds to pay staff, and they did it before they knew if any federal assistance programs were going to be made available.

“While dipping into reserves puts a strain on any business, tribal leaders’ commitment to their employees and communities was their highest priority.”

From the end of May to the end of June, many tribal casinos reopened—with caveats. As with commercial gaming resorts, tribal properties installed a spate of precautions and capacity limitations, limits that were self-imposed.

“We opened up May 29 after putting the safety measures in place so that we could do so responsibly,” Bean says.

The Saginaw Chippewa casinos eliminated smoking. They hired teams dedicated to the continuous cleaning of slot machines and other high-touch surfaces. Every other slot machine was turned off and restaurant capacity was reduced, with social distancing markers installed in appropriate places. Additional hand-sanitation stations and wipe stations were installed.

The properties conducted contact tracing of staffers who tested positive for the coronavirus to determine if the transmission occurred outside of the casino hotels where masks and other protocols may have been ignored.

“A team member who is isolated and tested for coronavirus after having had close contact at work with another team member who tested positive often results in a negative test,” Bean says. “We believe this is due to our mask-wearing requirement and other safety protocols.”

The Michigan tribal casinos produced strong volume through the fall, when a second wave of the pandemic hit, Bean says. The new wave did nothing to dampen the optimism.

Health First

During the time off, Mohegan Sun created an extensive health plan that is still in place.

“Dining and gaming guidelines are able to be relaxed as conditions have improved, though they‘re still in place for the health and safety of everyone,” Hamilton says.

“As vaccines continue to increase, coupled with continued guidance and vigilance from a health and safety standpoint, we expect the summer and fall to result in significant improvements in our gaming and non-gaming amenities.” —Jeff Hamilton, president and general manager of Mohegan Sun

The tribe developed a comprehensive program with assistance from the Mohegan Tribal Health Department. The plan included what is now commonplace for all casino hotel properties in the pandemic era: mask mandates, temperature scans at all entrances, capacity limits at restaurants, upgrades to the air conditioning system, Plexiglas dividers and a sanitation plan with frequent sanitizer stations.

“We weathered the storm,” Bean says. “We’re cautiously optimistic about the coming summer and fall. With vaccines anticipated to be widely available by this summer we anticipate a gradual return to pre-pandemic business volumes.”

The Chippewa Casinos have set aside some banks of slot machines so guests can play together, while still maintaining banks with every other machine turned off, giving patrons a choice. The salon and spa reopened with appropriate safety protocols in place and valet service could return in mid-June.

“We plan to kick off our summer concert series with Luke Bryan on May 29 with a concert lineup similar to our 2020 schedule,” Bean says.

Pala Casino Spa & Resort near San Diego closed March 15, 2020, and reopened May 27. There was no revenue during the shutdown, CEO Fred Buro says. “Of course, pain was suffered,” he says. “But if the current gaming revenue and trajectory maintain themselves, Pala will continue to experience exceptional performance.”

In recent months, compared against the same months last year, revenue is up. “It’s been accelerated, in part, as a result of stimulus checks being issued,” Buro says.

By late June, Oklahoma tribal casinos had reopened, working in concert with the Centers for Disease Control and Prevention and the Indian Health Service.

“Nothing is of greater importance to the tribes than the health and well-being of the citizens of their nations and non-tribal citizens who live, work and travel within their borders,” Morgan says.

Rapid Rebound

For Turning Stone, being open meant the return of its sportsbook, hotel, restaurants and golf course. Visitation has increased this year, mostly with local and regional patrons.

“We noticed many of our guests who might normally fly someplace for vacations instead booked three to four day trips to Turning Stone and our other properties,” Barkin says. “As more and more people get vaccinated, we’re already seeing guests return in much larger numbers.”

In Oklahoma, tribal casinos also cater to local and regional populations, and don’t depend on a fly-in market, Morgan says. “The ones that are marketed as more of a regional market are drivable for their customers. Others are located in rural Oklahoma, which means they’re the entertainment hubs for the people who live nearby.”

People go to these casinos for fine dining, concerts or to meet up for coffee or brunch, Morgan says. “When we were able to safely reopen and people were ready to get out, our customers were comfortable with enjoying our offerings.”

The initial return of entertainment at Mohegan Sun began in Comix Roadhouse and the luxury lounge, Novelle, both with limited seating capacities.

“The entertainment roster will expand in the coming weeks,” Hamilton says. “We’re really encouraged by recent trends and see a bright rebound on the horizon. We’re very encouraged about the future, and as 2021 progresses, we should see adjustments in the positive direction. As vaccines continue to increase, coupled with continued guidance and vigilance from a health and safety standpoint, we expect the summer and fall to result in significant improvements in key areas both in our gaming and non-gaming amenities, including hotel, dining, nightlife and entertainment.”

Live entertainment will be the last component to come back at Turning Stone, Barkin says. “Based on our guest feedback, we anticipate there will be a tremendous demand for live events.“

“For us, it’s about leadership to show how a venue can reinvent itself even in a pandemic environment.” —Tom Cantone, president of sports and entertainment for Mohegan Gaming & Entertainment

At Mohegan Sun, Tom Cantone, president of sports and entertainment for Mohegan Gaming & Entertainment, remembers the frustration of those early days in March 2020.

“I sat in my office surrounded by 8 million square feet of darkness, thinking of ways to stay relevant during this unprecedented time,” Cantone said back then.

He reached out to Viacom with an idea to use the resort’s arena to broadcast events for the company’s sports brands. The result was a residency partnership with Showtime Championship Boxing and Bellator MMA, with a series of fights broadcast live on Showtime and the Paramount Network.

“Tom Cantone and his team have been excellent partners and the venue has suited our unique needs to deliver both boxing and MMA sports,” says Stephen Espinoza, president of Showtime Sports.

While no fight fans crowded the stands, all combatants were still tested and quarantined before each fight, Cantone says; it was truly the first “bubble” to keep athletes safe and allow the matches to continue.

The first event almost brought Cantone to tears. “When I heard them say ‘Live from Mohegan Sun Arena,’ I got a little emotional as I saw my crew and people clapping. I remembered sitting in my office all alone, wishing for this day to come true. And like magic, it did.”

Mohegan Sun later hosted several college basketball tournaments late in 2020, where teams were placed in the Mohegan bubble. They served as the blueprint used by the NCAA to conduct March Madness in Indiana in 2021.

The relationships with Viacom and the college leagues paid off for Mohegan. “It was a combination of a good relationship and a great team to back it up here at Mohegan Sun,” Cantone says. “It’s an incredible endorsement for our team. We found a way to beat the pandemic.

“For us, it’s about leadership to show how a venue can reinvent itself even in a pandemic environment.”

Meeting Expectations

Turning Stone has also developed plans for the return of meetings and conferences, says Barkin. “We made significant investments in enhancing and expanding our meeting spaces, which includes technology upgrades that will allow for more advanced hybrid meetings and live-streaming functions.”

Along a similar line, meetings and conventions were foremost for Mohegan Sun.

“Entertainment and our meetings business become two areas that were unable to operate as normal, though gaming, dining, retail and hotel stays were all able to add to the revenue picture,” Hamilton says. “We were very innovative during the pandemic, however, and safe and successful events were gradually returned under the direction of Mohegan Sun’s vice president of exhibition and sales, John Washko.”

Turning Stone could add online sports betting and online casinos in the not-too-distant future, if the legislature acts. Both elements could soften the blow in similar emergencies in the future. Just ask New Jersey and Pennsylvania.

“Connecticut’s Governor Ned Lamont recently expressed optimism on sports betting and iGaming being possible by the start of football season,” Hamilton says.

Buro is less optimistic as to when the online components will kick in, mostly because of the long path necessary in California.

“As I understand it, the status of sports betting and iGaming in California is that everyone believes it’s going to happen; however, the when, who benefits in the short term, who benefits in the long term, along with regulations and taxes, all remain desperately elusive,” Buro says.

Still, he predicts that “California will have a bill passed within 18 months.”

In Michigan, sports betting is live, both in casinos and online, as is online gaming. Some tribal casinos already offer both options, and the Chippewa tribes should be functioning in that area sometime in 2021, according to Bean.

“We have a very nice venue that we further improved to soon add sports betting with online sports and online casino to follow. We will operate under our own brand to leverage, integrate and grow our existing customer base and retain the proceeds,” Bean says.