Cayuga Nation Can Sue New York State for On-Reservation Lottery Sales

• Federal court allows Cayuga Nation’s gaming lawsuit to proceed
• Tribe says state lottery violates tribal sovereignty, federal law
• Judge finds legal grounds for case to continue in court

A federal judge has allowed the Cayuga Nation to proceed with its lawsuit against New York State over lottery sales on tribal land.

The Nation argues that the purchase of lottery tickets by players inside its reservation — whether through the state-licensed Jackpocket app or New York Lottery vending machines — violates its sovereignty and federal law.

The lawsuit says the tribe alone is authorized to regulate the conduct of gaming on its lands under the Indian Gaming Regulatory Act (IGRA), which codifies tribal gaming rights.

Chips Fall for Tribe

The Nation operates four bingo-style casinos on its reservation under the Lakeside Entertainment brand. It argues that by allowing lottery sales within the reservation, New York is competing unfairly with its own operations.

The state had tried to get the case dismissed, arguing the tribe did not have the right to sue under IGRA.

In a decision issued July 30, Judge Brenda K. Sannes of the US District Court for the Northern District of New York denied the state’s motion to dismiss.

The ruling does not mean the Cayuga Nation has won the case, but it signals that the court sees the claims as legally valid and worthy of further consideration. The Nation is asking the judge to declare the state’s lottery operations illegal on its land and to order them to stop.

“The state’s presence on our land, operating Class III gaming, is illegal under federal law,” said Clint Halftown, the federally recognized leader of the Nation, in a statement following the ruling. “We’re standing up for our rights, our businesses, and the integrity of our community.”

App Dropped, Officials Remain

The lawsuit originally named the New York State Gaming Commission, seven of its commissioners, and Jackpocket, a private mobile app that allows users to buy lottery tickets digitally.

The Gaming Commission was removed from the case earlier this year, and Jackpocket was dismissed after the Nation reached a separate agreement with the company.

The claims against the individual state gaming officials remain active and are now moving forward in court.

“We’re not against gaming,” Halftown emphasized. “We’re against illegal gaming on our sovereign land.”