California Tribes Have Interest In Legalizing Sports Betting Again

This whole week, the Global Gaming Expo (G2E) went down in Las Vegas (where else, right?). As you’d expect with a conference that brings together the biggest stakeholders in the industry, there were a lot of open discussions about where things stand — particularly from a legal standpoint.

In the legalized sports betting front, all but 12 states have some form of wagering already. One of the dozen that doesn’t? That would be California, the most populous state in the country. Representing the state in a way was James Siva, who is chairman of the California Nations Indian Gaming Association. If sports betting in California is ever going to happen, it’ll be because of the tribes. Welp, Silva clued us all in on what the Native Americans are thinking of doing.

Silva Says Tribes Will Go For Sports Betting “Probably” 2028

At the expo, there was a panel called Tribal Sovereignty and Sports Betting: A Delicate Balance. Silva was a part of the discussion, but so was Washington Indian Gaming Association chair Rebecca George, Minnesota Indian Gaming Association executive director Andy Platto and Oklahoma Indian Gaming Association board chairman Matt Morgan.

During that talk, Silva dropped buzzworthy news: the tribes might try sports betting in California for the 2026 legislative session, but more likely in 2028. One of the two though. Silva was mum on other details like if they had plans for in-person betting at local casinos only or online. Still, it’s a sign of hope for a state starved for legal betting options in the sports world.

Of course, California does have land-based casinos. All these are tribal-operated though — no commercial casinos. In 2000, the tribes signed a compact with the state that would grant them exclusive rights to offer Las Vegas-style betting. This would extend to sports betting too so don’t expect operators like DraftKings or FanDuel to enter a legal sports betting market in California.

Tribes Will Have To Do Better Than 2022 Efforts

It’s not like the tribes haven’t tried legalizing before. They did and it failed in spectacular fashion.

California voters rejected not one, but two sports betting bills — Proposition 26 and Proposition 27 — in 2022. Proposition 26 aimed to legalize in-person sports betting at tribal casinos and horse racetracks. Proposition 27 focused on online betting, and even had financial backing from the likes of DraftKings and FanDuel.

Neither measure came even close to passing. Prop 26 earned a marginal 30 percent of the needed vote and Prop 27 did worse at 17 percent. Yikes!

Therefore, any bill in 2026 and 2028 will have to be fought tooth and nail. That’s going to take a lot of money from the tribes to promote and lobby for this thing. They have the funds, but even then, voters will need to be strongly convinced to change their tune.

Florida Opened The Door For Online Betting In California

The tribes have a tall task in getting a vote passed. However, if they manage to do it, they could have a path to offering betting online thanks to the Seminole Tribe.

Up until the Seminoles, it was thought that tribes could only offer betting online thanks its native lands. Online wagering was possible, but only if it was around its premises — not at your home, for instance. But then the Seminoles came up with a “spoke and wheel” model to circumvent those rules. This happens because the Seminoles partner with various locations beyond its land (spokes) that can take in bets, thus opening up where online wagers can be made.

It’s plausible that California could do the same, but there will be some difficulties cause there’s hundreds of tribes in the state — not one dominant one like in Florida’s sports betting scene. It remains to be seen whether these tribes can decide on something that benefits them all.

Tribes Will Soon Sue California Cardrooms

This doesn’t have to do with sports betting, but it does circle back to that compact we mentioned earlier. The tribes have argued that the compact is being violated by California cardrooms, which are not tribes but are allowed to offer card-game betting. Up until now, the tribes were not afforded the right to sue and let the courts settle this dispute. But things are changing.

At the start of October, California Governor Gavin Newsom signed a bill into law granting tribes the right to file a lawsuit against those cardrooms. The tribes sticking point is with the cardrooms’ use of player-dealers, or third-party proposition player services (TPPPS). This is what they contend infringes on their exclusive rights to offer gaming inside the state. TPPPS firms serve as the house in games like blackjack and roulette.

No lawsuit has been brought forth yet, but there will be one. California tribes are meeting later this month to decide on how and when to bring forward litigation. But as mentioned before, with over 100 tribes involved, settling on a concrete plan won’t be easy.

All this news is to say the California tribes will be busy over the next year. The stranglehold of its entire monopoly will either grow or lessen depending on how the lawsuit and votes go. Time will tell.