Caesars Sportsbook has asked a federal judge to dismiss a lawsuit brought by the Cayuga Nation over mobile sports wagers allegedly placed from within the tribe’s reservation, arguing that federal tribal gaming law does not provide the Nation with a claim against a private sportsbook.
In an August 17 motion, Caesars contends that the federal Indian Gaming Regulatory Act does not permit the type of claim filed by the Cayuga Nation. The company argues that because the Nation has no Class III gaming compact with New York, there was no compact or agreement that Caesars could have violated.
Caesars also maintains that New York regulators directed mobile sportsbook operators to treat online wagers as taking place where the operator’s servers are located. The servers handling Caesars wagers were not located on Cayuga Nation land.
On that basis, the company argues that any conflict between New York’s mobile sports betting system and federal tribal gaming law would constitute a dispute involving the state and its regulators.
The Cayuga Nation filed its lawsuit in June, alleging that Caesars accepted wagers from bettors physically located on tribal land between January 2022 and July 2025 without authorization from the Nation or a gaming compact.
The Nation argues that sports betting qualifies as Class III gaming under federal law and generally cannot be conducted on tribal land without an agreement between a tribe and the state. Although the Cayuga Nation operates Class II gaming through its Lakeside Entertainment facilities, it does not have a Class III gaming compact with New York.
According to the lawsuit, the lack of such a compact means a sportsbook cannot legally accept mobile wagers originating from within the reservation unless the Cayuga Nation has authorized the activity. The Nation is seeking the return of revenue Caesars allegedly generated from the wagers, as well as lost profits and other damages.
Caesars stopped taking wagers from within the Cayuga reservation after receiving a cease-and-desist demand in 2025 and subsequently established a digital geofence around the area. The company later declined a request from the Nation for records showing the amount wagered from within the reservation and the revenue Caesars received from those bets.
The Cayuga Nation has until September 22 to respond to the dismissal motion. Caesars is due to file its reply by September 29.
Original article: https://www.yogonet.com/international/news/2026/09/08/126294-caesars-sportsbook-seeks-dismissal-of-cayuga-nation-sports-betting-lawsuit
