The Alabama-Coushatta Tribe of Texas originally a casino in 2001. After 9 months of operation Texas ruled that state law supersedes the Federal Indian Gaming Regulatory Act and the casino was shut down.

Since 2001 Naskila Casino has fought the State of Texas for the right to offer casino games under the U.S. Indian Gaming Regulatory Act (IGRA) of 1988. That law allows Class II casino gaming on American Indian reservations across the nation. Texas claims the Texas Tribe Restoration Act of 1987 supercedes the provisions of the IGRA and specifically prohibits all gambling activities by the Alabama-Coushatta Tribe of Texas.

Near the end of 2015 the U.S. Department of Interior and the National Indian Gaming Commission ruled that the tribe can operate Class II casino games on its reservation.

Michael Odle with the National Indian Gaming Commission said in November 2015, "After evaluating a recent court decision it is in our belief, as well as the Department of the Interior, it provides the tribes in Texas the ability to game under Class II gaming. Generally what you will see is various forms of bingo, both hard copy and electronic forms."  Class II gaming excludes poker tables, slot machines or roulette.

On June 2, 2016 the new Naskila Casino replaced the former Livingston Entertainment Center. It is located off U.S. 190 between Woodville and Livingston about 17 miles east of the city of Livingston and 240 miles southwest of Fort Worth.

In August 2021 a U.S. District Court ruled against the State of Texas lawsuit to shut the casino down.

In June 2022 the U.S. Supreme Court reconfirmed that Texas has no juridiction over tribal casinos on reservation lands and ruled the state can not prohibit Indian gaming at these casinos.