California tribes and sportsbook operators coming together to discuss online sports betting.
After the defeat of online sports betting proposals in California, tribes are redefining their approach. With major stakeholders like DraftKings and FanDuel seeking collaboration, discussions on legal sports betting are gaining momentum. The focus will be on aligning with tribal governance and interests, possibly leading to a statewide ballot initiative in the coming years. The lucrative California sports betting market could generate billions annually, emphasizing the importance of respectful negotiations among stakeholders.
In sunny California, the quest for legal online sports betting is taking some new turns after the disheartening defeat of two proposals in 2022. California’s tribes, who poured over $200 million into the fight against Prop 27, an initiative brought forth by major players like DraftKings and FanDuel, are redefining their approach as they regroup in the wake of disappointment.
Last November, California voters made it very clear—with a mere 16% support for Prop 27 and an unfavorable reception for Prop 26—that they were not quite ready to embrace online sports betting. The rejected Prop 26 was more aligned with tribal interests, focusing on in-person sports betting at tribal casinos. However, it seems that the enthusiasm for legal sports betting doesn’t simmer down easily, and tribes are insisting that any future efforts should be steered by tribal governments themselves.
At the Indian Gaming Tradeshow and Convention, the heads of DraftKings and FanDuel addressed the elephant in the room: their previous outreach efforts to the tribes. Recognizing that better communication is essential, they are now looking to foster a more cooperative relationship with tribal leaders. Both companies are also members of the Sports Betting Alliance, which is now exploring ways to collaborate on a framework for legal sports betting in the Golden State.
That path is not without its obstacles, though. Tribal leaders have underscored the importance of pacing discussions around sports betting legalization to honor tribal governance and sovereignty. While exciting ideas continue to surface, like creating a singular entity that would represent all 109 California tribes to manage online betting licenses, there is no formal agreement just yet. Experts in sports betting are cautioning that reaching a consensus among the tribes might take time—perhaps even several years. This means that for now, these discussions are very much in their infancy.
The groups involved are considering a statewide ballot initiative that could potentially pop up as soon as 2026, although 2028 might be a more realistic aim due to concerns about legal complexities and the feeling of voter fatigue. This discussion puts into question whether any new initiative would adhere to the Indian Gaming Regulatory Act, a matter causing some debate among stakeholders.
The sports betting market in California is tantalizingly lucrative, with projections of generating between $3 billion and $4 billion annually. Such an influx could offer a lifeline to both the state and tribal casinos, potentially benefiting numerous communities. However, the details of how to achieve this remain scattered, with both sides recognizing the need to understand and respect tribal sovereignty and interests. A collaborative model, sometimes referred to as a “mega tribe” concept, is also being floated as a great way to negotiate terms with sportsbook operators, making sure the operations remain tribally owned and run.
Although the conversation is just beginning to gain momentum, tribal representatives have made it clear that the timeline for any advancements will depend on their governance and needs. It’s a delicate balance, and one that aims to ensure that the interests of the tribes are at the forefront of any legal framework. For California, the road ahead will not only require dialogue and compromise but also a recognition that sometimes, the best paths forward take time to carve out.
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