The Minnesota Federal Court has dismissed a lawsuit against tribal gaming executives following allegations of illegal gambling.
Running Aces, a company that operates a casino, a racetrack, and a restaurant in Minnesota, alleged that five tribal casinos are offering illegal gambling options, or offered them in the past. Each of these casinos is owned and operated by a federally recognized tribe, either the Prairie Island Indian Community, the Mille Lacs Band of Ojibwe, the Mille Lacs Corporate Ventures, or the Shakopee Mdewakanton Sioux Community.
Because federally recognized tribes are immune to lawsuits, unless determined otherwise by the US Congress, Running Aces did not directly file a lawsuit against the tribes, but against dozens of current and former employees linked to the casinos, seeking both declaratory and injunctive relief. This lawsuit has now been dismissed ‘on numerous grounds’, including the fact that the tribes are required parties, yet cannot be sued.
Why was the lawsuit dismissed?
Although Running Aces attempted to overcome the dismissal by splitting up its claims between prospective equitable relief and damages separately, the filing came too late to be accepted by the court. That means the lawsuit is now entirely thrown out, without further room for amendments or appeals without a whole new lawsuit filing.
The court also took into account ‘the threat of crippling individual liability’ for the defendants, reasoning that those named in the lawsuit would have to weigh their official and legal responsibilities against their personal and financial interests.
“There can be no question that imposing enormous financial liability on the individuals who operate [the] casinos – indeed, even the threat of such liability – is likely to severely hamper those Tribes’ ability to operate their casinos, which are their economic lifeblood,” reads the court ruling from the Minnesota Federal Court.
Lawsuits related to tribal gaming rights can often escalate to higher courts, although it didn’t happen in this case. In June, the US Supreme Court was forced to weigh in on a Florida gambling lawsuit involving tribes.
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