Running Aces Takes Legal Action Against Tribal Casinos for Alleged Racketeering

(KNSI) — Running Aces, a harness track in Columbus, Minnesota, has filed a federal racketeering lawsuit against three tribal casinos, alleging they are operating card games violating state and federal gambling laws.

Running Aces, which operates a casino in addition to its racetrack, claims tribal casinos are resisting its efforts to expand table games, aiming to maintain their dominance in the market.

The lawsuit was filed under the federal Racketeer Influenced and Corrupt Organizations or RICO Act, a law typically used to combat organized crime. RICO suits are also applicable when a business is suspected of having an unfair competitive advantage. In 2006, the Supreme Court clarified that it was not enough for a company to simply complain about a competitor’s tactics. To proceed with a RICO claim, the plaintiff must demonstrate a direct link between the injury alleged and the injurious conduct challenged.

Running Aces’ allegations are specific and date back to 2020. They claim that Grand Casino Mille Lacs and Grand Casino Hinckley have offered Three Card Poker and Ultimate Texas Hold ‘Em, which are not covered by their tribal-state gaming compacts. These compacts, signed by the Tribal nations and the State of Minnesota, were designed to allow legalized gambling on Indian land. The compacts stipulated that casinos could only offer video games of chance (slots) and blackjack. Furthermore, both parties agreed that the compacts should be effective indefinitely, requiring mutual consent for any changes.

Treasure Island Resort and Casino near Red Wing was also accused of similar violations until its compact was amended last fall to include additional card games in addition to blackjack.

The suit coincides with the opposition from Running Aces and another horse track, Canterbury Park, to a proposed legalization of sports betting. They argue the move would threaten their operations. Tribes could team up with sports betting companies and offer stipends to the tracks, but they said what’s being offered is too low.

Canterbury and Running Aces also oppose legislative proposals trying to outlaw a newly approved form of horse race betting, which recently received regulatory approval.

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