NIGC probes UEG’s sketchy tribal online gambling deals

The sketchy developer behind efforts to launch an online gambling site for Oklahoma tribal groups is reportedly being investigated by the National Indian Gaming Commission (NIGC).

On Monday, The Oklahoman reported that the NIGC was looking into the 2014 demise of an online gambling deal between the Cheyenne and Arapaho Tribes and Florida-based developer Universal Entertainment Group (UEG) that never got off the ground despite the tribes paying UEG $9.4m.

Cheyenne and Arapaho tribal legislative speaker Reggie Wassana told the media outlet that the NIGC had recently asked for additional information regarding the tribes’ 2012 deal with UEG. Wassana noted that while UEG did launch a PokerTribes.com website, “nothing became of” the project beyond the bare-bones site. “There was no realization of profits and no actual working internet gaming.”

UEG’s pitch to tribes was that their sovereign nation status allowed them to launch real-money online gambling operations targeting customers outside the United States. Trouble is, virtually no one believes such a site will be able to capture any significant slice of that international market without spending millions of dollars on marketing, and where that money might come from is unclear.