A Minnesota Indian tribe asked the state Court of Appeals on Tuesday to overturn a Minnesota Racing Commission decision allowing a new form of betting at two horse tracks.
The Shakopee Mdewakanton Sioux Community filed a petition with the court seeking to block a recent regulatory change. Earlier this month, the Minnesota Racing Commission approved a gambling game known as historical horse racing, which uses terminals to allow bets on races from the past.
Lawyers for the Shakopee community argue the commission lacked authority to approve the games. The companies that operate Canterbury Park in Shakopee and Running Aces in Columbus jointly applied for the ability to have 500 terminals for the new games, which the commission ratified.
The gambling would be allowed beginning on May 21 — the day after the Legislature is due to adjourn for the year.
Lawyers for the tribal community contend the form of gambling is too similar to slot machines, which tribes have exclusive rights to host in their casinos.
“The community seeks an order from the Court of Appeals reversing the commission’s decision because it exceeded the commission’s statutory authority, was based on an erroneous legal theory, procedurally defective, unsupported by substantial evidence, arbitrary and capricious, and a violation of the community’s due process rights,” the lawyers wrote in their petition.
Absent a reversal, the attorneys say formal rulemaking should be required or a contested case hearing be initiated that could allow for more input.
Racetrack operators say the betting is based on skill not luck.
“Somebody who understands handicapping is going to do better than someone who doesn’t understand handicapping,” said Evan Nelson, an attorney for Running Aces. “That’s the reason it is not a game of chance.”
State lawmakers are considering a bill that would outlaw historical horse racing and other types of card games the Legislature hasn’t explicitly approved. Racetrack operators say that move would deprive them of a critical revenue source.
At the House committee hearing, several racetrack executives and employees testified their livelihoods and that of the state’s horse breeding industry are at stake. Randy Sampson, chief executive at Canterbury Park, said Minnesota’s horse tracks are at a crossroads.
“Each of these Minnesota gaming industries provide different types of economic community development with positive impacts throughout the state,” Sampson said. “As technology and consumer preferences evolve each of these groups is subject to the same competitive pressures and the need to adapt.”
Jack Meeks, chairman of the group Citizens Against Gambling Expansion, spoke in favor of the bill.
“The machines under consideration look like slot machines, act like slot machines and at any reasonable evaluation are slot machines,” Meeks told lawmakers.
The bill advanced through a House committee on a 9-8 vote Tuesday.
DFL Rep. Brad Tabke joined all committee Republicans in opposition. He represents a district that includes the Shakopee Mdewakanton Sioux Community and the Canterbury Park track, and said he is working toward a solution that suits all interests.
“Everyone has both similar and competing interests with everything that is going forward here today,” Tabke said.
“There is a solution there to be had,” he told his colleagues, referring to a parallel sports betting bill as a place for compromise. The tracks are seeking a share of those revenues.