What is Tribal compact?
A tribal compact is an agreement between a US state and a federally recognised Native American tribe setting the terms under which the tribe may offer casino-style gaming.
The Indian Gaming Regulatory Act of 1988 (IGRA) divides gaming into three classes. Class III, which covers slot machines, banked table games such as blackjack, and sports betting, is only allowed on tribal land under a compact negotiated with the state and approved by the federal Department of the Interior. IGRA also created the National Indian Gaming Commission.
Compacts often set out exclusivity rights, revenue sharing payments to the state and regulatory arrangements. They have become central to debates over online sports betting and iGaming, because tribes may hold exclusive rights in a state. In Florida, a 2021 compact gave the Seminole Tribe control of statewide online sports betting.
Tribal interests are also a factor in disputes over prediction markets and sweepstakes casinos.