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Caesars Sportsbook has asked a federal judge to dismiss the Cayuga Nation’s lawsuit over mobile sports wagers allegedly accepted from within the Nation’s reservation in New York.
The dispute centers on wagers the Cayuga Nation says Caesars took from people physically located on tribal land between January 2022 and July 2025 without the Nation’s authorization or a Class III gaming compact. The Nation is seeking revenue Caesars allegedly earned from those bets, plus lost profits and other damages.
Caesars says the claim targets the wrong party
According to the source report, Caesars argued in an Aug. 17 motion that the federal Indian Gaming Regulatory Act does not allow the Cayuga Nation to bring this kind of claim against a private sportsbook.
Caesars also said New York regulators instructed mobile sportsbook operators to treat an online wager as occurring where the operator’s servers are located, not where the bettor is physically standing. The company said its servers were not on Cayuga Nation land.
On that basis, Caesars argues that if New York’s mobile betting structure conflicts with federal tribal gaming law, the dispute should be with the state and its regulators rather than with Caesars itself.
Cayuga Nation says wagers on reservation land required its authorization
The Cayuga Nation’s lawsuit alleges that no sportsbook can legally accept mobile wagers from within the reservation unless the Nation authorizes it. The Nation argues that sports betting is Class III gaming under federal law and generally cannot take place on tribal land without an agreement between the tribe and the state.
The Nation operates Class II gaming through its Lakeside Entertainment facilities, but it does not have a Class III gaming compact with New York, according to the report.
The report also says Caesars stopped accepting wagers from within the reservation after receiving a cease-and-desist demand in 2025 and created a digital geofence around the area. Caesars later declined a request from the Nation for records showing how much money was wagered from the reservation and how much revenue the sportsbook allegedly received.
What comes next in the case
The Cayuga Nation’s response to Caesars’ dismissal motion is due Sept. 22. Caesars then has until Sept. 29 to file its reply.
For New York sports betting watchers, the case raises a still-unsettled question: whether a mobile bet is treated as happening where the bettor is located or where the sportsbook’s servers are located. The judge’s next steps will determine whether the case moves forward on the merits or ends at the dismissal stage.
If you bet on sports in New York, use legal operators and gamble responsibly.
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Source: As reported by fingerlakesdailynews.com.
