Court dismisses Running Aces lawsuit against 5 tribal casinos

(FOX 9) - A Running Aces Casino lawsuit that accused five tribal casinos of offering illegal card and video games of chance was dismissed.

The lawsuit, filed in spring 2024, was dismissed in federal court on Tuesday. 

READ MORE: Mystic Lake, Little Six casinos named in Running Aces lawsuit alleging illegal video games

Court records show the lawsuit aimed to recover damages and that Running Aces was seeking an injunction against the illegal gambling activities. 

Lawsuit dropped 

What they're saying:

The concluding line in the dismissal filing states, "As noted, the gaming that is challenged in this lawsuit is of enormous economic importance to the absent Tribes, and protecting the economic sustainability of tribes is a primary goal of IGRA specifically and federal Indian policy generally. The Court therefore has little trouble concluding that the Tribes’ interests in protecting a critical source of funds and jobs outweigh Running Aces’s interest in a forum for its claims of competitive injury."

The court document also states, "Running Aces—a bitter competitor of the Tribes—is seeking to impose crushing personal financial liability under RICO on dozens of current and former employees of the casinos."

READ MORE: Running Aces Casino files federal lawsuit against 3 Minnesota casinos

When the lawsuit was first filed last year, Shakopee Mdewakanton Sioux Community, which owns Mystic Lake and Little Six, shared this statement in response: 

"Running Aces’ lawsuit has no merit. All gaming conducted at Mystic Lake and Little Six Casinos complies with tribal law, federal law, and the gaming compact that was executed in 1989.

"Winning in court is not Running Aces’ real purpose in filing this case. It is a desperate stunt to attack the good reputation of tribes and tribal gaming. This lawsuit is intended to mislead the public and influence the final stages of the Minnesota Legislature’s 2024 session."

The full dismissal can be viewed below:

The other side:

Running Aces President and CEO Taro Ito said he was surprised by the dismissal, saying the case wasn't dismissed on merit, but on procedural issues.

He maintained the casinos named in the lawsuit are offering illegal gambling activity. 

"What recourse does a competitor or individual have when they feel like they've been harmed or damaged by a tribal casino? It appears there isn't any available, because it's required to have tribes as an indispensable party. Obviously, the tribes will just claim sovereign immunity and the case is thrown out."

Ito added that Running Aces will seek to appeal the dismissal and will pursue all legal remedies available. 

The full lawsuit filed by Running Aces can be viewed below:

Why was the lawsuit filed? 

The backstory:

The lawsuit was initially filed under the federal Racketeer Influenced and Corrupt Organization (RICO) Act, naming high-level executives at tribal-owned casinos. 

Those casinos include Mystic Lake and Little Six, which are owned by the Shakopee Mdewakanton Sioux Community, Grand Casino Hinckley and Grand Casino Mille Lacs, which are owned by Mille Lacs Band of Ojibwe, and Treasue Island Resort and Casino, owned by the Prairie Island Indian Community. 

The lawsuit alleged the casinos have "illegal and unfair competitive advantages over Running Aces" by offering class III card games that were not authorized by the Tribal Gaming Compact or the State of Minnesota. 

According to the Minnesota Alcohol and Gambling Enforcement, Class III gambling includes "common casino games such as video games of chance (slot machines and video poker), roulette, craps, baccarat, and banking card games such as blackjack. Class III gambling is conducted under a compact that each tribe negotiates with the government of the state in which it is located."

The lawsuit aimed to recover damages, with Running Aces seeking an injunction against the alleged illegal gambling activities, according to a press release from the casino.