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Sports betting became legal in the state of Washington as the coronavirus began closing tribal casinos in March 2020, but it was not until Thursday that the state gambling commission approved the last of the regulations.
At its January meeting, the Washington State Gambling Commission (WSGC) chose to withdraw a set of technical rules it set aside in October concerning integrity monitoring systems, geolocation requirements and sports-betting systems.
Those rules were also meant to bridge gaps not covered in tribal-state compacts, such as areas where compacts do not outline specific sports wagering vendor requirements, where more detail is necessary for enforcement and to address non-tribal vendor related activities where information sharing may be necessary.
In October, gaming regulators hoped that setting aside the rules would allow them to address concerns expressed by sports-betting companies and tribal gaming operators.
Despite the delay and ongoing negotiations, both sides were unable to reach an agreement forcing the WSGC to withdraw its “dual regulatory” approach to overseeing sports betting in Washington state.
Instead, regulators approved an amendment Thursday to their sports-betting rules dealing with denying, suspending or revoking an application, license or permit for any violation of gambling laws, or for any licensee that has obtained a license fraudulently or has been convicted or pleaded guilty to a felony.
According to the new section, failure to pay gambling taxes, quarterly license fees, a late fee assessed by the WSGC, or failing to comply with tribal laws or the provision of the applicable tribal-state compact related to sports betting can also lead to loss or denial of a license, application or permit.
The five-member commission took less than ten minutes on Thursday to approve the new rule.
The technical rule language, initially opposed by tribes in October, had mirrored the state-tribal gaming compacts regarding the need for sports wagering systems to meet or exceed the GLI-33 technical standard for event wagering systems and providing additional clarity for vendors.
Tribal officials suggested the draft rule language be amended to only refer to the compacts or internal controls; however, staff at the time chose not to implement the change because the rules were designed work in combination with tribal regulatory authority to determine suitability.
Ron Allen, chairman of the Washington Indian Gaming Association, said the group's position was any sports-betting rules that touch on the issue of operations are appropriately left to the compacts, not state regulations.
“We believe that these rules are unnecessary — as proven by the fact that multiple tribes are now operating a sports book without them — and inconsistent with the tribal compacts already negotiated between the WSGC and the tribes,” Allen wrote in a letter to the commission dated December 6, 2021.
All federally-recognized tribes in the state of Washington have a state-tribal gaming compact, with 22 tribes operating 29 casinos in the state.
So far, 16 of the tribes have amended their compacts to offer wagering on sports. Last month, the WSGC reached a tentative agreement with the Nisqually Indian Tribe to amend the tribe’s compact to add sports betting, operate higher wager limits or extend credit to customers.
The amendment updates a nearly 30-year-old compact allowing the tribe to operate the Red Wind Casino on reservation land in Olympia. At its April 14 meeting, the commission is expected to forward the proposed compact to the governor’s office.
At the same time, the compact will be sent to Nisqually tribal chairman William Frank III for his signature before being forwarded to the U.S. Department of the Interior for final approval. If approved, the Nisqually would become the 17th tribe in Washington state to offer sports betting.
