Santa Ysabel Band loses decision in online bingo betting dispute

Monday, August 13, 2018

A screenshot of Desert Rose Bingo, which was operated by the Iipay Nation of Santa Ysabel for two weeks in November 2014.

The Iipay Nation of Santa Ysabel can't offer online bets on bingo, the 9th Circuit Court of Appeals ruled earlier this month.

In a unanimous decision, the court said the Unlawful Internet Gambling Enforcement Act, a federal law known as UIGEA, limits how wagers can be offered on the internet. The bet must be legal both in the jurisdiction in which it is “initiated” as well as where it is “received,” Judge Carlos T. Bea wrote.

So while bets placed on Desert Rose Bingo, a server-based version of the game, are "received" in the Iipay Nation, where they are legal, they are "initiated" in California, where such wagers are illegal, the court concluded on August 2.

"Thus, when Iipay accepts financial payments over the internet as part of those bets or wagers, Iipay violates the UIGEA," Bea wrote in the 18-page ruling.

Indianz.Com on SoundCloud: 9th Circuit Court of Appeals - California v. Iipay Nation of Santa Ysabel

The tribe turned to virtual gaming after closing the Santa Ysabel Resort and Casino in southern California due to financial problems. The internet system operated for barely two weeks in November 2014 before being shut down by court order.

The tribe later launched a marijuana operation in the former casino building. The business is now the subject of litigation, East County Magazine reported in May.

Turtle Talk has posted documents from the online bingo case, California v. Iipay Nation of Santa Ysabel.

Read More on the Story:
Appeals court upholds ban of tribe's online casino (The Northern California Record August 12, 2018) $P 9th Circuit Court of Appeals Decision:
California v. Iipay Nation of Santa Ysabel (August 2, 2018)