Caesars Sportsbook seeks dismissal of Cayuga Nation’s lawsuit regarding mobile sports bets from tribal lands.
The Cayuga Nation filed a lawsuit against Caesars in June, alleging unauthorized acceptance of sports bets made from the tribe’s reservation between January 2022 and July 2025.
The Nation demands the return of revenues from bets placed on its reservation, lost profits, and other damages.
This case marks the first instance of a tribe suing a state-licensed sportsbook for online bets from Indian lands, according to gaming attorney Daniel Wallach.
Sovereign Rights
The tribe argues that the bets were unlawful as sports betting falls under Class III gaming, requiring agreements between the tribe and the state to occur on tribal land.
As Cayuga operates Class II gaming without a Class III compact in New York, the tribe asserts that no sportsbook, with or without state licensing, can accept mobile sports bets from its reservation without authorization.
In its motion to dismiss on August 17, Caesars claims that federal tribal gaming law does not empower Cayuga to sue a private sportsbook over these matters.
Caesars maintains that since there is no Class III compact between Cayuga and New York, there is no agreement for the sportsbook to have violated.
Take It Up With New York
Additionally, Caesars argues that state regulators specified that online wagers are deemed to occur where the sportsbook’s servers are located, not the bettor’s physical location.
Since the servers were not on tribal land, Caesars contends that it adhered to New York’s guidelines when accepting these disputed bets.
If the Nation is correct that New York’s framework is inconsistent with IGRA, then its dispute is with New York and its regulators,” Caesars argued.
After receiving a cease-and-desist order in 2025, Caesars ceased accepting wagers from the Cayuga reservation and implemented a digital geofence around the area.
However, the sportsbook declined Cayuga’s request for records detailing wager amounts and profits from bets placed there.
Cayuga’s response to the motion is due by September 22, with Caesars able to respond by September 29.
Cayuga is also engaged in another legal dispute with New York gaming authorities over lottery sales and the Jackpocket app on reservation territory.