iGaming in the USA: Tribal Operators

Publication date: 8 December 2025

Tribal operators have remained a key pillar of the American gambling industry for decades, shaping regional economies and setting standards for land-based casinos. However, the market’s shift to a digital format has changed the rules of the game. Traditional advantages such as land, sovereignty, and exclusivity function differently online and by no means guarantee automatic leadership. Read our detailed analysis on 3S.INFO about how tribal casinos could influence iGaming in the USA.

What are Tribal Operators?

Tribal operators in the United States are gambling companies owned and operated by federally recognized Indian tribes. They operate on tribal lands under their own semi-autonomous jurisdiction and are regulated by the federal Indian Gaming Regulatory Act (IGRA). It is tribal operators who are behind hundreds of casinos across the country, forming the largest segment of the US land-based gambling market and generating revenue that goes not to private shareholders but to community development: healthcare, education, infrastructure, and social programs.

• The modern American iGaming market is recognized as one of the most technologically advanced and rapidly growing, offering broad prospects for affiliate marketing. However, the establishment of the gambling industry in the United States is a story that begins with sacred rituals and harsh prohibitions, continuing (though far from concluding) into a multi-billion dollar online sphere. On 3S.INFO, we’ve prepared an exciting excursion into the history of gambling and betting in the USA: from the customs of indigenous peoples to the formation of iGaming, one of the highest-revenue digital industries.

Why Are Tribal Operators a New Force in US iGaming? 

Tribal operators have long been the invisible backbone of the US gambling industry. While public attention is focused on major brands and commerce giants, it is tribal casinos that generate a huge portion of national revenue, control key regions, and possess political autonomy unavailable to any corporate player. Their role in the land-based sector is so significant that many states are essentially reliant on tribal compacts, tax revenues, and multi-billion-dollar infrastructure projects funded by casinos.

Today, however, the industry stands on the brink of its largest transformation in decades — the shift to online betting and iGaming. In this new environment, tribal operators are facing challenges that simply did not exist before. Technological barriers, legal contradictions, competition with national platforms, and pressure from states have created a situation where their traditional levers of influence no longer guarantee leadership.

Nevertheless, writing off the tribes would be a mistake. They possess a unique political status, control strategically important territories, and are increasingly becoming key partners for major operators, serving as a bridge between the land-based and digital markets. Understanding how tribal operators are evolving and the role they play in shaping the future of iGaming is one of the most critical aspects of analyzing the American gambling market today.

• The United States is currently riding the crest of a digital transformation in the gambling industry. The market is maturing rapidly, becoming more technological and fiercely competitive. All the details of this evolution will be available on December 12, 2025, in the updated article “USA iGaming Overview: A Complete Guide to the Most Lucrative Traffic GEO.”

Why Can Native American Tribes Open Casinos in the US?

This is related to their special status within the U.S. power system. Tribes are considered sovereign nations within the United States, with their own laws, territories, and rights to self-government.

1. Native tribes are not merely ethnic groups, but rather semi-autonomous states. They have their own governments, police forces, and the right to regulate activities on their lands.
2. Judicial Precedent: California v. Cabazon Band (1987). In 1987, the Supreme Court ruled that if a state allows any forms of gambling (lottery, bingo, horse racing), then it cannot prohibit a tribe from opening a casino on its own land. This became a point of no return. Tribes gained legal confirmation of their right to engage in the gaming business.
3. IGRA 1988 (Indian Gaming Regulatory Act). In response to the court decision, Congress enacted a special law that created the entire modern model of the industry. It defined three classes of games: Class I (traditional tribal games), Class II (bingo and similar games, permissible without state approval), Class III (full-fledged casinos: slots, poker, table games, sports betting). For Class III, the tribe needs to conclude a gaming compact with the state. Afterward, the casino becomes entirely legal and regulated.

Why Do Tribal Casinos Impact the U.S. iGaming Industry?

• Economy. Initially, many reservations were impoverished with few jobs. Casinos became a powerful source of income. Profits from gambling go towards healthcare, education, infrastructure, and social programs.
• Geography. Tribal territories are located in many states where commercial casinos are banned, thus giving tribal operators a monopoly on the gambling market.
• Industry Scale. By 2025-26, tribal casinos operate in 29 states, encompassing over 500 facilities, generating tens of billions of dollars annually, competing with Las Vegas in terms of service level.

Some tribal casinos in the U.S., such as Seminole (Hard Rock), have transformed into global brands.

Which U.S. States Have Tribal Casinos?

Based on public sources. This is not an absolutely exhaustive list, but it covers most such states.

Online Casinos and Betting in the USA: Opportunities for Tribal Casinos

By 2025 (2026), certain tribal casinos in the U.S. might organize online games and online betting, albeit with limitations. 

• Tribal online gaming depends on the laws of the state where they operate. Not every tribe can automatically launch an online casino.
• Frequently, partnership with a commercial operator or an agreement with the state is required.
• There is a legal question: does a game count as being played “on tribal land” if the player is outside the reservation territory? 

Which Tribal Casinos in the U.S. Can Operate Online? 

• Mohegan Gaming & Entertainment (owned by the Mohegan Tribe, Connecticut) launched its digital division, Mohegan Digital, in July 2021, aiming to develop online casinos and mobile sports betting. 
• In Michigan, online casino (iGaming) regulations stipulate that a license can be granted either to a commercial casino or to a partnership with a tribe.

How Do Tribal Casinos Differ From Commercial Casinos in the U.S.? 

Tribal casinos are casinos owned and managed by Native American tribes. Tribes in the U.S. have a unique status: they are considered semi-autonomous nations with their own rules. Because of this, they have the right to open casinos on their lands. Revenue from casinos goes not to private owners, but to the tribal treasury for healthcare, schools, housing, and social programs.

Commercial casinos are standard casinos owned by large corporations, investors, and gaming holdings (such as Caesars, MGM, etc.). Their goal is to generate profits for the company and shareholders. They operate according to the rules established by specific states.

Similarities Between Commercial and Tribal Casinos in the U.S.

• In terms of gaming offerings: both tribal and commercial casinos often feature slot machines, table games, poker, resorts, and entertainment complexes.
• They compete for the same customer base: tourists, gambling enthusiasts, resort visitors.
• Both categories rely heavily on regulation: licenses, contracts, player protection rules, accountability, taxation, etc.
• Both types of casinos are integrated into the regional economy: hotels, restaurants, jobs, infrastructure.

Comparative Overview of National Indian Gaming Commission (Tribal) vs. Commercial Casinos in the U.S. (Key Differences)

What’s the Difference for a Player Between Commercial and Tribal Casinos in the U.S.? 

Who Will Dominate the U.S. iGaming Market: Tribal Groups or Commercial Operators?

The U.S. gambling market is entering a phase where the key issue is no longer who will launch an online casino first, but who will maintain control over the digital ecosystem once the majority of players definitively shift to mobile format. In this struggle, two forces collide, each with its political weight, history, and economic resources: commercial giants and tribal operators. Although superficially it seems everyone starts on equal footing, the situation is far more complex.

Today, tribes still dominate the offline casino market: dozens of resorts, exclusive agreements, populations accustomed to visiting “tribal” casinos. But in the digital environment, the rules are different. Here, success comes to those who can scale technology, work with data, and retain players through user-friendly interfaces and effective marketing — not territorial monopolies. That’s why the online casino market is already shaping a completely different hierarchy.

Commercial operators take the lead. They hold national licenses, utilize dozens of marketing channels, and possess budgets allowing them to purchase ad spaces, build media partnerships, integrate into sports, and develop proprietary platforms. They face no IGRA restrictions, avoid disputes concerning “digital jurisdiction,” and aren’t obligated to coordinate every decision with federal departments.

Tribes, however, confront outdated legislation tailored for brick-and-mortar casinos and the necessity to negotiate with states, turning any online project into a lengthy legal procedure. Even strong players like Seminole, Mohegan, and Pechanga navigate through countless legal barriers. Nevertheless, tribes enjoy one significant advantage: when a state grants exclusivity (like Florida, potentially California), they transform into monopolists, leaving little room for commercial operators.

iGaming Future in the U.S.: Prospects for Gambling and Betting Development

1. Commercial operators will emerge as leaders in iGaming. Their national ecosystems, advertising budgets, and technological foundations give them a sustainable edge.  
2. Tribes will maintain dominance in the offline sphere and in select states. Where jurisdiction allows exclusivity, tribes will remain very strong — up to full-fledged monopolies.
3. The decisive factor lies with major states. If California or Florida solidify advantages for tribes, the balance could drastically shift. Conversely, if states opt for a commercial model, tribes would lose their chance at scalable online operations.  
4. In the long term, the market will become hybrid. Offline operations will remain dominated by tribes, while online segments will predominantly belong to commercial enterprises. Points of intersection will expand, and some tribes will become strategic partners of digital giants.

In the digital ecosystem, competitiveness is determined not only by political influence but also by technological maturity, speed of solution implementation, data-driven capabilities, and the ability to build national product networks. This creates a gap between tribal and commercial operators: the former rely on historical rights and local sovereignty, while the latter leverage scalability, innovation, and flexibility.

Nevertheless, the role of tribal operators in iGaming remains critically important. They continue to hold strategic positions in several states, actively participate in shaping legislative agendas, and collaborate with tech brands to create hybrid models of operation. As the industry digitizes further, their influence will evolve but not disappear. Tribal operators will retain significance in regions where decisions are driven not solely by finances but also by history, culture, and political autonomy.

In the coming years, the market will move toward equilibrium: commercial operators will claim the bulk of the online segment, while tribes consolidate their positions in jurisdictions where their rights ensure exclusive access. Ultimately, their future role in the next stage of iGaming development in the U.S. will hinge on how effectively they adapt their strengths to the digital format.

Anna Volotskaya

Author with 20 years of experience. I cover everything about iGaming, traffic sources, regulation, and tools—clearly, in detail, and in...

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