Running Aces Files Racketeering Lawsuit Against Minnesota Tribal Casinos

Running Aces, one of Minnesota's two horse-racing tracks, has filed a federal racketeering lawsuit against tribal casinos, alleging they have offered unauthorized card games in violation of state law.

The lawsuit, filed Tuesday in federal court, names executives at Grand Casinos in Hinckley and Mille Lacs as well as Treasure Island Resort & Casino.

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Compact Violations Claimed

According to the Alcohol and Gaming Enforcement Division, the 1988 Indian Gaming Regulatory Act compacts between the tribes and state limit casinos to video games of chance and blackjack.

However, Running Aces contends the Grand Casinos have offered other "class III" games like Three Card Poker and Ultimate Texas Hold 'Em without authorization.

Treasure Island also offered these games until its compact was revised last October.

Unfair Competitive Advantage Cited

The lawsuit alleges the unauthorized card games provided the tribal casinos with "illegal and unfair competitive advantages" over Running Aces, which also offers blackjack and the other named games.

"All that we have ever sought was to be treated fairly, compete on a level playing field...and operate without fear of being eliminated," said Running Aces CEO Taro Ito.

Tension Amid Sports Betting Debate

The lawsuit comes just weeks before the end of Minnesota's legislative session, where mobile sports betting legalization remains unresolved.

Proposals giving tribes exclusive sports betting rights have raised objections from Running Aces and Canterbury Park, who seek a share of the expanded gambling market.

The lawsuit may raise tensions in the contentious debate.

High Stakes for All Sides

Running Aces seeks unspecified damages from tribal casino executives as well as an injunction to halt the allegedly illegal card games.

With legislation hanging in the balance, the racketeering allegations pit the DFL's loyalty to tribes against Republican support for the tracks in what could be a high-stakes showdown.