Tribal leaders and sports betting operators discussing collaboration at the conference.
California is seeing renewed efforts to legalize sports betting as tribal leaders and major operators discuss collaboration following the contentious ballot fight of 2022. At the Indian Gaming Tradeshow & Convention, the Sports Betting Alliance presented a proposal to establish a governing body for online wagering, aiming to balance tribal control with national operator partnerships. Despite previous setbacks with voter propositions, there is hope for a consensus approach by 2028. Ongoing discussions highlight the need for fair revenue sharing between tribes and operators while respecting tribal sovereignty.
California is witnessing a renewed effort to legalize sports betting as tribal leaders and sports betting operators explore a collaboration following a contentious ballot fight in 2022. The discussions were recently initiated at the Indian Gaming Tradeshow & Convention in San Diego, where representatives from the Sports Betting Alliance (SBA), including major players such as DraftKings and FanDuel, unveiled a proposal aimed at establishing a single governing body to manage online sports wagering within the state. This proposed framework seeks to ensure that tribal control is upheld while enabling partnerships with national sports betting operators.
In California, the only legal gaming establishments are tribal casinos, the State Lottery, horse racing, and card rooms, with other forms of betting remaining prohibited. Historically, individuals looking to access non-tribal casinos or online betting platforms have had to travel outside of California, as the state’s gambling laws have limited options for sports betting.
The 2022 attempt to legalize sports betting through two competing propositions—Proposition 27 and Proposition 26—was met with significant opposition, resulting in a combined expenditure of over $200 million by tribes and sports betting operators. Proposition 27, which aimed to facilitate commercial operators without tribal oversight, was rejected by 80% of voters. Conversely, Proposition 26, which sought to grant control to tribal operations, garnered less than 30% support. The outcome of this ballot fight has prompted the SBA to rethink strategies by suggesting a collaborative approach that allows for competition among betting operators under the auspices of the proposed governing body.
The current proposal has sparked renewed dialogue between tribal organizations and sports betting operators, many of whom had previously considered similar governance models. However, there are lingering questions regarding the legislation’s viability under the Indian Gaming Regulatory Act, as raised by James Siva, chairman of the California National Indian Gaming Association (CNIGA). Tribal leaders are particularly concerned about issues surrounding revenue sharing, advocating for a framework that ensures a fair distribution of the revenue generated from sports betting activities among the tribes.
Tribal representatives, such as those from the Estom Yumeka Maidu Tribe, have voiced their desire for a significant share of the revenues produced by sports betting initiatives. To facilitate meaningful engagement in the legalization process, the SBA has formed a tribal advisory board designed to incorporate tribal leadership into ongoing conversations.
As discussions evolve, there is an understanding among tribal governments that carefully crafting an acceptable legislative framework will require more time. Rather than pursuing another ballot initiative in 2026, tribal leaders are advocating for a more inclusive strategy, looking toward a possible consensus around 2028.
In summary, the efforts to legalize sports betting in California now focus on collaboration and partnership between tribal casinos and sports betting operators. As both sides work toward an agreement that recognizes tribal sovereignty and equitable sharing of revenue, the path to legalization remains complex and uncertain, with many stakeholders interested in ensuring a fair outcome for all involved.
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