Judge dismisses Running Aces lawsuit against 5 other Minnesota casinos
A judge has dismissed a federal lawsuit by Running Aces Casino against five tribal casinos in Minnesota that it accused of offering games not allowed under state law.
The lawsuit was filed last spring under the Racketeer Influenced and Corrupt Organization (RICO) Act, and named 39 current and former executives and employees at Mystic Lake, Little Six, Grand Casino (Hinckley and Mille Lacs) and Treasure Island Resort Casino as defendants.
It alleged the casinos were offering games – such as Three Card Poker and Ultimate Texas Hold 'Em – not permitted under state compacts set up through the Indian Gaming Regulatory Act (IGRA) of 1988.
But U.S. District Court Chief Judge Patrick Schiltz dismissed the case Tuesday, saying that the current and former employees named did not adequately represent the tribal nations, and as a result the tribes could be negatively impacted by the ruling in a lawsuit in which they are not listed as defendants.
However, the judge also acknowledges that sovereign immunity protects tribes from lawsuits such as that filed by Running Aces.
"Setting that aside, even if Running Aces's claims have merit, the remaining ... factors – especially the Tribes' sovereign immunity and the magnitude of the prejudice that the Tribes could suffer from a judgment entered in this case – weigh in favor of dismissal. Indeed, courts frequently find that an absent tribe's sovereign immunity outweighs the plaintiff's lack of an alternative forum."
"As noted, the gaming that is challenged in this lawsuit is of enormous economic importance to the absent Tribes, and protecting the economic sustainability of tribes is a primary goal of IGRA specifically and federal Indian policy generally... The Court therefore has little trouble concluding that the Tribes' interests in protecting a critical source of funds and jobs outweigh Running Aces's interest in a forum for its claims of competitive injury," it continues.
The suit was dismissed without prejudice, meaning a similar lawsuit can be filed in the future, and Running Aces President and CEO, Taro Ito, told Bring Me The News he does intend to file again.
He said he was "surprised" to hear of the judge's ruling, claiming the dismissal related to "procedural issues" rather than the merit of his casino's case. He also said the judge's dismissal highlights there is little legal recourse for complaints against tribal casinos, saying tribes can simply claim sovereign immunity.
"Obviously it's disappointing because we feel very strongly about our case," he said. "We'll take this to the Supreme Court if we have to."
BMTN has reached out to Grand Casino, Mystic Lake, Treasure Island and Little Six for comment on the outcome but haven't heard back.
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