Gaming Firms Court Tribes in Bid to Bring Sports Gambling Back to California Ballot

Three years back, California's influential Native American tribes invested heavily more than $200 million into stopping Proposition 27, an initiative backed by DraftKings and FanDuel aimed at legalizing online sports gambling.

It seems like tensions are subsiding. that bitter fight Over who will define the direction of gaming and betting in California has become such a significant issue that businesses and Native American tribes are considering collaboration. However, tribal leaders have stated emphatically that reaching an accord on a structure for sports gambling in California remains unresolved. This includes potential plans for a statewide vote to legitimize it through a ballot initiative.

At the recent Indian Gaming Tradeshow and Convention, DraftKings CEO Jason Robins and FanDuel President Christian Genetski participated in a talk titled "The Power of Partnerships." During their onstage dialogue with Indian Gaming Association Conference Chair Victor Rocha, both executives frequently emphasized their understanding of the message conveyed clearly by tribal leaders during the contentious 2022 ballot battle: Any future development of online sports betting in California must be spearheaded by the tribes.

I won’t claim that we’re perfect – we’ve certainly had our share of errors," Robins stated. "However, those who collaborate with us and those of you who have come to know us realize that we genuinely care and strive to get things right… Establishing connections and alliances within these tribes is crucial—there’s simply no alternative approach.

The members of the Sports Betting Alliance, such as DraftKings and FanDuel along with Fanatics and BetMGM, include found themselves at odds along with the tribes when they secured qualification Prop 27 , aiming to legalize online sports betting by adding it to the 2022 ballot. Meanwhile, the tribes advocated for their separate parallel proposal. Prop 26 , which would have permitted in-person sports gambling on tribal territories. Both proposals failed overwhelmingly , where over 80 percent of voters opposed Proposition 27, which was backed by corporations.

"It was an effort driven by good intentions but lacked information and was misdirected," said Genetski, who is the CEO of FanDuel. described in a remorseful display At the Western Indian Gaming Conference in February, they stated, "It was undoubtedly a significant failure for us. The timing and strategy were not appropriate. We reflected internally and asked ourselves, 'What went wrong, and how can we move forward?'"

The ongoing reconciliation among former adversaries extends further than merely orchestrating a professionally executed panel discussion at an industry trade fair. The Sports Betting Alliance has set up a tribal advisory council and arranged high-level meetings between executive members and tribal chiefs during their recent convention in San Diego to explore possible structures for partnership.

A major advancement would necessitate going back to the voting booth. Prop 1A Passed in 2000, this amendment legalized gambling by constitutional decree but required agreements with Native American tribes. A proposal currently under consideration involves forming a unified body encompassing all 109 acknowledged tribes. This collective would enter into contracts with sports betting operators to provide online wagering services. Under this plan, the operators would cover the costs associated with placing a statewide ballot measure potentially as soon as the following year.

However, tribal leaders are indicating firmly that they will not hastily agree to anything with those who were once their enemies. The California Nations Indian Gaming Association has also opposed this move. since-updated media report The two parties have apparently come to an understanding according to a joint announcement. While the talks were "fruitful in certain aspects," as stated by CNIGA, they also emphasized that claims of a finalized agreement are “entirely unfounded."

Additional talks between tribal governments are anticipated over the next several weeks and months," according to the statement. "Do not harbor any illusions: developing a suitable structure and governance model will require considerable time.

Sports betting expert John Holden, a professor at Indiana University’s Kelley School of Business, told Playbook he estimates an official announcement could be “months, if not years, away” because each of the tribes will have to approve any agreement before it can move forward.

"You're dealing with 109 governments … and government doesn't move quickly,” he said. “There may have been some good things talked about, but getting a consensus on board with a plan is going to take time. It's not, ‘Yes, we sat down at the table, and this is all worked out.’ It needs approval.”

The importance of this matter cannot be overstated for either party. During the conference in San Diego, DraftKings' Robin stated, "No other state holds the potential to influence our future expansion as much as California does."

However, it's evident why these businesses are keen on giving the impression that an agreement has already been secured. "In the final analysis," Holden stated, "[the sports betting operators] won’t wield much power over the outcome. If sports wagering proceeds, it will do so according to the preferences set forth by the tribes."

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