The Cayuga Nation has filed a federal lawsuit against Caesars Sportsbook, alleging the company accepted sports wagers from within the Nation’s reservation without authorization and in violation of federal gaming law.
Court documents filed Tuesday (June 16) in the U.S. District Court for the Northern District of New York accused American Wagering, Inc., operating as Caesars Sportsbook, of offering sports betting services inside the boundaries of the Nation’s federally recognized 64,015-acre reservation.
According to the complaint seen by ReadWrite, Caesars conducted sports wagering on tribal land “without the Nation’s authorization, approval of a Tribal-State compact, or oversight by the National Indian Gaming Commission (‘NIGC’) or the Secretary of the Interior, as required by IGRA.”
The Nation argues that the Indian Gaming Regulatory Act grants tribes authority over gaming on Indian lands unless specific federal requirements are satisfied. It says Class III gaming, including sports betting, can only take place under a tribal gaming ordinance and an approved Tribal-State compact.
The lawsuit states that the Cayuga Nation has adopted only a Class II gaming ordinance and has never entered into a compact authorizing Class III gaming. Because of that, the complaint alleges that “no class III gaming, including sports betting, can be lawfully conducted on the Nation’s Reservation.”
The allegation suggests that Caesars accepted wagers from within the reservation between approximately January 8, 2022, and July 15, 2025. The Nation claims those activities violated federal law, breached its gaming ordinance, and interfered with tribal authority over gaming regulation.
The filing says a cease-and-desist letter was sent to Caesars on June 20, 2025. Caesars allegedly responded on July 15, 2025, agreeing to geofence its platform outside reservation boundaries. The Nation says the company later declined to provide a complete accounting of wagering activity and revenue generated from bets placed within the reservation.
The complaint also includes a false advertising claim under the Lanham Act. The Nation argues Caesars promotes itself as a fully compliant sportsbook throughout New York while failing to disclose restrictions that may apply on Indian lands. According to the filing, the company’s marketing creates “the misleading impression that its platform is legally available everywhere within the State, without geographic restriction.”
The lawsuit comes as the Cayuga Nation pursues other gaming-related legal battles. In July, a federal judge allowed the Nation’s lawsuit against New York State over lottery activity to move forward. It challenges the state’s operation of Class III gaming products, including lottery terminals tied to Powerball and Mega Millions, on tribal land. Cayuga leaders contend the state failed to secure a valid compact and infringed on tribal sovereignty.
The Caesars case also arrives during a period of major change for the gaming industry. In May, Fertitta Entertainment announced a proposed $17.6 billion acquisition of Caesars Entertainment that would combine casino resorts, digital gaming brands, loyalty programs, sportsbooks, and hospitality operations across the United States. The transaction remains subject to shareholder and regulatory approval.
The Cayuga Nation is seeking declarations that Caesars violated federal law and tribal rights, along with damages, revenue disclosures, and additional court-ordered relief.
Featured image: Cayuga Nation via website
