## Facts

- The Santee Sioux Tribe operated casino gaming in Indian country and previously was enjoined from conducting unlawful class III gaming under the Indian Gaming Regulatory Act (IGRA) absent a state compact.
- After violating prior court orders and accruing substantial coercive contempt fines, the Tribe removed its class III slot machines.
- The Tribe replaced the slot machines with “Lucky Tab II” devices used with paper pull-tabs on preprinted rolls.
- Lucky Tab II scanned encrypted barcodes on individual paper pull-tabs, displayed on a video screen whether the pull-tab was a winner or loser, and dispensed the paper pull-tab to the player.
- The outcome of play was determined by the preprinted pull-tab sequence, not by randomization internal to the machine.
- The United States contended Lucky Tab II functioned as an unlawful class III “electronic facsimile” and as a prohibited “gambling device” under the Johnson Act.
- The Tribe contended Lucky Tab II merely assisted a lawful class II pull-tab game because it did not determine outcomes, operate independently of the paper tabs, play against participants, or distribute winnings.
- The district court granted the Tribe relief from the existing civil contempt order, finding the Tribe’s modified operations complied with the injunction.

## Issues

1. Whether the district court abused its discretion by granting relief from a prior civil contempt order after the Tribe replaced class III slot machines with Lucky Tab II devices.
2. Whether Lucky Tab II qualifies as a “gambling device” under the Johnson Act.
3. Whether Lucky Tab II is a prohibited class III “electronic facsimile” or a permissible class II electronic aid under IGRA.

## Decision

- The Eighth Circuit affirmed the order granting relief from the civil contempt order.
- The court held the district court did not abuse its discretion in concluding the Tribe’s use of Lucky Tab II did not violate the earlier injunction directed at unlawful class III gaming.
- On the record presented in the contempt-relief posture, the government did not establish that Lucky Tab II was a Johnson Act gambling device or an IGRA-prohibited class III electronic facsimile so as to justify continuing coercive contempt sanctions.

## Legal Principles

- Appellate review of an order granting relief from civil contempt is for abuse of discretion, with deference to supported factual findings.
- Civil contempt sanctions are coercive and may be lifted when the contemnor’s changed conduct brings it into compliance with the governing injunction.
- For IGRA classification disputes involving electronic components, whether a device is an impermissible “electronic facsimile” or a permissible class II aid turns on the device’s role in determining game outcomes and operating the game.
- In evaluating Johnson Act “gambling device” claims in a contempt-relief context, the court may consider whether entitlement to winnings arises “by operation of” the machine itself or from preexisting, nonrandom game pieces external to the machine; an unresolved showing may be insufficient to continue contempt fines.

## Conclusion

The Eighth Circuit upheld the district court’s decision to terminate ongoing civil contempt sanctions because the Tribe’s replacement of slot machines with Lucky Tab II devices, as found by the district court, did not amount to continued unlawful class III gaming or a proven Johnson Act violation on the record supporting contempt relief.


United States v. Santee Sioux Tribe of Neb., 324 F.3d 607 (8th Cir. 2003)