California rejected two sports betting propositions in 2022 after campaigns spent hundreds of millions of dollars to sway voters.
Now, major gambling companies are reportedly trying to court California’s Native American tribes to find a path forward to legalize sports betting in the Golden State.
The big picture: DraftKings CEO Jason Robins and FanDuel President Christian Genetski attended “The Power of Partnerships” conference at the annual Indian gaming Tradeshow and Convention last week, according to a report from Politico.
- They held an on-stage discussion with Indian Gaming Association Conference Chair Victor Rocha, where they said that any path forward to legalize sports betting in California needs to be led by the tribes.
- The discussion came as part of a tribal advisory board that was established with the Sports Betting Alliance to bring the top gaming executives together with tribal leaders.
- Politico reported that one possibility being considered is to create a single entity of all 109 recognized tribes who would then contract with gambling operators to offer online betting platforms. The sports betting companies would fund a campaign for a ballot initiative which could come as early as 2026.
Flashback: The two measures that failed in 2022 were Proposition 26 and Proposition 27, both of which would have legalized sports betting.
- Proposition 26 was backed by many tribes throughout the state. It would have allowed in-person sports betting at tribal casinos and state-regulated racetracks. It also would have given tribal casinos roulette and dice games.
- Proposition 27 was backed by major gaming companies, including FanDuel and DraftKings, as well as tribes. It would have allowed tribes to offer sports betting online and have partnerships with gaming companies.
- The campaigns for both propositions saw around $360 million spent in total.
What they’re saying: “I’m not going to sit here and say we don’t make mistakes – we’ve made many mistakes,” Robins said, per Politico. “But I think those who partner with us, and those like you who’ve gotten to know us, understand we really do care and we want to do it the right way … Having tribal relationships and partnerships is absolutely essential – there’s no other way to do it here.”
- The California Nations Indian Gaming Association (CNIGA) told Politico that any agreement will take time to sort through.
- “Further discussions among tribal governments are expected to take place in the coming weeks and months,” CNIGA said in a statement. “Let there be no false illusion: establishing an acceptable framework and governance model will take time.”
