By BROOKLYN BROWN BIGMEAT
One Feather Reporter
CHEROKEE, N.C. – On Taline Iga (Tuesday) Duliisdi (Sept.) 15, the CLARITY Act failed to pass a procedural cloture vote in U.S. Senate with a result of 50 against and 49 in favor. The CLARITY Act would have created a regulatory framework for cryptocurrencies and digital assets, including prediction markets. Prediction markets are online platforms where people can bet on the outcomes of events via contract.
Ugvwiyuhi (Principal Chief) Michell Hicks opposes prediction markets, and was pleased with the failure of the CLARITY Act cloture vote, stating in part in a release from Tsoine Iga (Wednesday) Duliisdi 16,
“The [Eastern Band of Cherokee Indians (EBCI)] celebrates the vote in the U.S. Senate against the CLARITY Act, legislation that would have legalized illegal online sports betting and other casino games. The EBCI and Tribal Nations across Indian Country opposed this bill because of its direct affront to tribal sovereignty and the tribal gaming industry…Prediction markets allow people to put money on the outcome of events, including sporting events, through what they call ‘event contracts.’ The concern is that if a sports wager can be called a financial contract instead of a bet, companies could use federal financial regulations to operate outside the gaming laws that Tribes and states are required to follow.”
Dinilawigi (Tribal Council) representatives also shared their opposition to prediction markets.
Tutiyi nole Tsalagi Gadugi (Tutiyi and Cherokee Co.) Rep. Michael Smoker shared, “Prediction markets are in direct conflict with the sovereignty of Indian tribes, because the prediction market cannot regulate or control where betting is done. Under the Indian Gaming Regulatory Act, Indian tribes have the ability to enforce how wagering is handled on their lands. Without measures in place to protect the sovereign constitutional rights of tribes, prediction markets are basically a lawless environment for unregulated and unethical wagering.”
Wayohi (Wolftown) Rep. Bo Crowe added, “I’m not comfortable with any market that would provide access to betting to younger people. Prediction markets have been shown to be accessible to teenagers. Gambling is very simply an adult’s decision, and we have a responsibility to protect our young people.”
Kolanvyi (Big Cove) Rep. Venita Wolfe stated, “Prediction markets are the most recent threat to our tribal sovereignty by providing illegal online sports betting. Not only does this violate tribal, state, and federal laws, but prediction markets are attacking our tribal members by undermining our tribal government’s ability to provide services to our EBCI members. Along with our tribal leaders and other tribal nations, I have been involved in protecting our rights to self-governance through gaming.”
Wilson Pipestem, a citizen of the Otoe-Missouria Tribe and an attorney and lobbyist for the EBCI, stated, “[The CLARITY Act] as it’s currently written would essentially codify the view of prediction markets on their view of the law. So, it would permit this activity to continue. Tribal governments from across the country have been united in opposing that legislation…Right now, the prediction markets have been focused on sports betting but based on their theory of how what they’re doing is legal, there’s nothing that would prohibit them from getting into online casino gaming, table games, slot machines, that sort of thing. So, some are predicting that the impact on tribal gaming would be a 25 percent hit to tribal gaming if this is not brought under control. So, very serious issues related to tribal sovereignty and our authority to regulate and control gaming that takes place on our tribal lands. I know that Principal Chief Hicks, as one of the executive committee members of the Indian Gaming Association, he’s got a front row seat into the tribal leader dialogue that’s going on around this issue.”
Pipestem said President Donald J. Trump was a proponent of the CLARITY Act. View who voted yea or nay here. N.C. Republican Senator Ted Budd voted yea, and N.C. Republican Senator Thom Tillis voted nay.
Ugvwiyuhi Hicks shared that the EBCI will continue to oppose prediction markets. “This issue will continue to evolve as technology changes and the EBCI will remain engaged and continue working with our partners across Indian Country to protect tribal sovereignty.”
