Native News

Minn. Supreme Court affirms approval of ‘dealer assist’ electronic card games at racetrack casino

People read oral arguments
The Minnesota Supreme Court hears oral arguments in two cases at the Minnesota Judicial Center in St. Paul, on Jan. 23, 2025.
Ben Hovland | MPR News

The Minnesota Supreme Court has settled a dispute between a tribal nation and a racetrack casino over what’s called “dealer assist” electronic table games in favor of the racetrack. 

The Shakopee Mdewakanton Sioux Community challenged a 2023 decision by the Minnesota Racing Commission approving a plan by Running Aces Hotel, Casino & Racetrack to add another “dealer assist” table to its card room in Columbus. The Shakopee Mdewakanton Sioux Community operates a gaming complex on its land just south of the Twin Cities.

Evan Nelson, lead attorney for Running Aces, said his client is pleased with the outcome of the case. 

“This is an important part of the card room for Running Aces. This is innovative technology that allows for maybe a different generation of people who want to play card games to interact with the games,” Nelson said.

The technology used by Running Aces features a live dealer who draws cards from a shuffled deck. A camera transmits images of the game to dozens of players seated at multiple stations. Using an interactive touch screen at the stations, players can place bets.

The Minnesota Racing Commission approved the use of “dealer assist” games in 2017. It was only after Running Aces’ floor plan was approved that SMSC appealed the agency’s decision to the Minnesota Court of Appeals arguing the decision was an unlawful expansion of gaming by the racing commission. 

SMSC appealed their case to the state’s Supreme Court, asking the court to vacate the appeals court’s decision, arguing that electronic table games at Running Aces are “video games of chance.”  Minnesota state law limits the use of video games and other gambling devices to federally recognized tribes that have signed a compact agreement with the state.

In its arguments to the state Supreme Court, attorneys for Running Aces argued that SMSC is a competitor, and that any potential losses in gaming revenue don’t give the tribe legal standing to address those losses in court.

The state Supreme Court rejected that argument and held that state law does give tribes exclusive rights to certain types of gaming activities. The court said the tribe can challenge the decisions made by the Minnesota Racing Commission because it has a ‘legally protected interest.” 

The justices split 3-3 on the merits of the tribe’s challenge to the racing commission, affirming the lower court’s decision.

In a statement shared with MPR News, the Shakopee Mdewakanton Sioux Tribe said it was “deeply disappointed” by the decision.

“We believe these games are a clear violation of Minnesota law,” read the statement.

The decision comes after a federal judge last year dismissed a lawsuit brought by Running Aces against SMSC gaming executives, and others were operating card games in violation of state and federal gambling laws.