Caesars seeks dismissal of Cayuga Nation sports betting lawsuit

Can the tribe recover funds from Caesars Sportsbook under federal gaming laws?

A federal court fight over mobile sports betting on Cayuga Nation land is now centered on a threshold question: whether the Nation can use federal tribal gaming law to recover money from Caesars Sportsbook at all.

Caesars asked a judge to dismiss the lawsuit

Caesars has asked a judge to dismiss the lawsuit, arguing the Cayuga Nation lacks a valid claim under the federal Indian Gaming Regulatory Act and that New York’s mobile betting system treats wagers as occurring where sportsbook servers are located, not where individual bettors happen to be standing.

The Cayuga Nation filed the lawsuit in June, alleging Caesars accepted mobile sports wagers from people physically located within the Nation’s reservation between January 2022 and July 2025 without tribal authorization or a Class III gaming compact.

The Nation is seeking revenue it says Caesars earned from those wagers, along with lost profits and other damages.

At the core of the Nation’s case is its argument that sports betting qualifies as Class III gaming under federal law and generally cannot legally occur on tribal land without an agreement between the tribe and the state.

The Cayuga Nation operates Class II gaming 

The Cayuga Nation currently operates Class II gaming through Lakeside Entertainment but does not have a Class III gaming compact with New York.

According to the Nation’s lawsuit, that means mobile sportsbooks cannot lawfully take wagers from people located within Cayuga territory unless the Nation itself has authorized the activity. Caesars sees the legal structure differently.

In an Aug. 17 dismissal motion, the company argues that the Indian Gaming Regulatory Act does not give the Cayuga Nation the ability to bring this type of lawsuit against a private sportsbook. Caesars also contends there was no Class III compact in place between the Cayuga Nation and New York, meaning there was no compact for Caesars to violate.

The company is also relying on how New York regulates mobile sports wagering.

Under the state’s framework, Caesars argues, an online wager is treated as occurring at the location of the operator’s servers rather than at the bettor’s physical location. Those servers were not on Cayuga Nation land.

That distinction is central to Caesars’ effort to have the case thrown out.

The sportsbook argues that if New York’s mobile betting rules conflict with federal tribal gaming law, the Cayuga Nation’s dispute is with the state and its regulators — not Caesars.

The litigation follows a cease-and-desist demand from the Nation in 2025.

After receiving that demand, Caesars stopped accepting wagers from within the Cayuga reservation and established a digital geofence intended to block betting from the area.

The company later declined a request from the Nation for records showing how much money had been wagered from within the reservation and how much revenue Caesars had received from those bets.

NY Sports Betting vs. Tribal Law

The case now moves into the next stage of briefing, awaiting the Judge's Ruling.

The Cayuga Nation has until Sept. 22 to respond to Caesars’ motion to dismiss. Caesars will then have until Sept. 29 to file its reply.

The judge’s ruling could determine whether the case proceeds into discovery and a broader examination of how New York’s mobile sports betting system intersects with tribal gaming law.