California Sports Betting Sees Some Hope • This Week in Gambling

Gambling expansion is always a fight. And when in comes to California sports betting there is a lot on the line. There are so many competing interests and so much money at stake that we should expect this to be a long, convoluted battle. But now the Sports Betting Alliance (SBA) has rolled out a plan that may pave the way to a compromise on the issue. And what makes this particularly exciting is that the Tribes seem to be of the same mindset.

At the recent Indian Gaming Tradeshow & Convention in San Diego, representatives from DraftKings and FanDuel unveiled a proposal to create a unified tribal entity in California, which is home to 109 tribes. The idea is to establish a single entity that would contract with national operators to facilitate online sports betting in the nation’s most populous state. Under this proposal, members of a new SBA would compete against each other but agree to pay a “minimum guarantee per tribe” annually and share revenue with all California tribes. The arrangement aims to mitigate the risk for tribes, with the operators shouldering the financial responsibility of the initiative.

The California sports betting plan envisions limiting the number of operators in the state to four. However, the SBA representatives emphasized that the tribes would ultimately decide which entities to license and how many operators would be allowed. If the tribes choose to exclusively partner with the SBA, popular platforms such as ESPN Bet, Hard Rock, Prime Sportsbook, and Sporttrade would not be accessible to bettors in California.

James Siva, Chairman of the California National Indian Gaming Association, engaged in a dialogue with DraftKings’ Jeremy Elbaum and FanDuel’s Frank Sizemore, questioning whether their proposed model would operate “inside” or “outside” of the Indian Gaming Regulatory Act (IGRA), the federal law that governs tribal gaming. Elbaum responded that he was uncertain, suggesting that certain aspects of IGRA could pose complications. However, he emphasized that regardless of the structure, the SBA’s primary goal would be to include all tribes, with no cost to Indian Country, while safeguarding tribal sovereignty.

The discussion surrounding the suture of California sports betting hinted at the possibility of a commercial agreement between the industry and California tribes for sports betting, rather than altering tribal compacts to allow digital sports betting. Siva also made it clear that tribes are concerned about the potential expansion of online gambling. He pushed Elbaum and Sizemore to commit that their proposal would not include provisions for online casinos.

As California tribes weigh potential partnerships with commercial operators, they remain cautious about making any moves that could inadvertently pave the way for online casino gaming. As the debate continues, the tribes are carefully considering how best to navigate the intersection of sports betting, sovereignty, and commercial interests in California’s evolving gambling landscape.

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