News Summary

In California, the dialogue surrounding online sports betting has resumed after the failure of Prop 27 in 2022. Tribal leaders insist any future sports betting initiatives should be led by tribes, emphasizing sovereignty and governance. While sportsbook operators, including DraftKings and FanDuel, are now willing to collaborate with tribes, the path to an agreement remains complex. A potential plan involves creating a ‘mega tribe’ representing all California tribes to oversee online betting licenses. Stakeholders anticipate further discussions as they navigate legal hurdles and community needs, eyeing possible initiatives as early as 2026.

California Tribes and Sportsbook Operators Seek a Collaborative Future for Online Sports Betting

In sunny California, the conversation around online sports betting is heating up again after a recent defeat at the ballot box. Back in 2022, a monumental push by some major players in the sports betting world, DraftKings and FanDuel, to get Prop 27 approved—a measure aiming to legalize online betting—went up in flames. After investing more than $200 million to rally votes, the tribes of California saw Prop 27 get only a meager 16% support from voters. Meanwhile, another measure, Prop 26, which sought to allow in-person sports betting through tribal operations, also faced a cold reception.

The Tribal Perspective

For California’s tribes, it’s clear that any future attempts at sports betting must be exclusively led by tribal governments. There’s a strong belief that the control over gambling should remain within tribal hands, especially after seeing how things unfolded last year. Tribal leaders have voiced that, when it comes to legalizing sports betting, they are keen on establishing a framework that respects their sovereignty and governance.

Interestingly, leaders from DraftKings and FanDuel have recently acknowledged that their approach to engaging with tribal communities may not have been ideal in the past. They are now open to exploring collaborations moving forward, with hopes of creating a shared path that respects the interests of both the tribes and sportsbook operators.

Collaborative Efforts in the Works

As part of a burgeoning alliance called the Sports Betting Alliance, both companies are in discussions with tribal leaders about how they might move forward together. A potential plan suggests forming a single entity representing all 109 tribes in California to oversee online betting licenses. This “mega tribe” concept would allow tribes to collectively negotiate terms, focusing on creating opportunities that benefit tribal communities without losing their governance rights.

However, tribal representatives have made it abundantly clear that while discussions are underway, any formal agreement is still far from being achieved. The tribal leaders emphasize the importance of taking the dialogue at a pace that suits their governance systems, ensuring that every voice is heard and respected. Consensus among the tribes won’t be easy or quick, as many tribes are understandably cautious and need to get approval from their respective governments.

What Lies Ahead?

As the dust settles over the 2022 votes, discussions on a potential statewide ballot initiative for sports betting are once again surfacing, with some suggesting a timeline that could see action as early as 2026. Still, many believe that 2028 might be a more realistic target, especially considering the complexities involved in California’s legal landscape and potential voter fatigue after previous attempts.

While experts on sports betting see tremendous potential in California’s market—projected to rake in between $3-4 billion annually—there remain significant hurdles. Beyond securing tribal approval, navigating the nuances of the Indian Gaming Regulatory Act is a point of contention that must be resolved before any initiative can be pushed forward.

The Road to Consensus

Moving forward, the focus is on building a collaborative environment where both tribes and sportsbook operators can find common ground. DraftKings and FanDuel have expressed their commitment to understanding tribal sovereignty and interests, but there’s a long road ahead. With ongoing discussions about what a successful partnership would look like, key concerns around legal complexities, voter approval, and cultural sensitivity remain at the forefront of negotiations.

As California continues to shape its approach to sports betting, the tribes hold the reins, navigating their timeline based on their needs and governance structures, while the major sportsbook operators are keen to listen, learn, and adapt. The journey may be fraught with challenges, but one thing is clear: the conversation is alive, and everyone involved is eager to find a way forward. Stay tuned, California—this isn’t the last you’ll hear about the quest for online sports betting!

California Tribes Seek Future for Online Sports Betting