California's efforts to legalize sports betting faced another setback in January when two ballot initiatives, aiming to grant exclusive rights to tribal entities, were withdrawn following strong opposition from tribes within the state. Eagle1 Acquisitions Corp, the organization backing one of the propositions, attempted to garner more tribal support by revising its ballot initiative in December. Ultimately, these attempts did not succeed.
In light of this, the California Nations Indian Gaming Association (CNIGA) expressed that this failure should serve as a clear warning against future efforts to legalize sports betting in California without involving tribal groups. Jason Giles, the Executive Director of the Indian Gaming Association, remains optimistic about the potential for cooperation between operators and tribes. He anticipates a better opportunity to advocate for legalization in 2026, with the upcoming 2027 Super Bowl in Los Angeles presenting a compelling reason to push for a sports betting bill.
“There is most certainly a path to online sports betting in California – and it starts with the tribes,” Giles stated in an interview before the Indian Gaming Tradeshow and Convention at the Anaheim Convention Centre, scheduled for April 8-11. He continued, “I don’t think it is inevitable as some people have said recently, but we are seeing positive signs, such as the decision by FanDuel and DraftKings to engage with us at our trade show in Anaheim.
“We are not putting a timescale on when tribes will exercise their sovereign authority and look for that path forward with the state, commercial gaming, and the tribal community. It is more important to put measures in place that maintain the sustainability of our communities and the tribal gaming industry.”
The year 2023 marked a pivotal chapter in the fight for tribal sovereignty as state governments sought greater authority over Indian lands. Tribes achieved a significant victory during the summer when a federal appeals court reinstated a compact between Florida and the Seminole Tribe, effectively establishing a tribal monopoly on mobile sports betting in the state.
In September, the full U.S. Court of Appeals for the District of Columbia declined to rehear the case, allowing the Seminole Tribe to re-launch mobile betting in Florida in November through its partner, Hard Rock Bet. The Florida Supreme Court subsequently rejected a motion from West Flagler Associates, a pari-mutuel betting operator, to suspend Hard Rock Bet’s operations.
Tribes received another boost in February 2024 when the Department of the Interior announced new federal regulations aimed at enhancing the “clarity and transparency” of Indian gaming compacts, mirroring the changes seen in Florida. Giles praised the DOI's move, expressing appreciation for the Biden-Harris administration's commitment to supporting Indian country, and he is hopeful it will foster business growth.
“Indian Country is stronger than ever and will, through our tribal leadership, continue to defend the rights of tribal communities,” he added.
According to the National Indian Gaming Commission’s annual report, tribal gaming revenues rose by 4.9% in 2022 to $40.9 billion, marking a record increase of $1.9 billion from the previous year. The sector has bounced back from the impacts of the Covid-19 pandemic, setting a prosperous future in motion. Giles believes that tribal gaming will continue to thrive by maintaining a robust regulatory framework while exploring sustainable, long-term industry approaches.
“Tribal gaming will remain strong through a robust regulatory framework and by taking a sustainable, long-term approach to the industry’s future,” he stated, noting the community's openness to new ideas and innovation. “We are looking to work with companies who not only understand Indian Country but who can bring new ideas and new technologies so that we can continue to offer world-class experiences for customers.”
Despite the sector's resilience, concerns persist about politicians and commercial gaming interests attempting to capitalize on tribal success. Giles remains confident that tribal gaming can withstand competition as long as tribes maintain unity. He emphasized, “Protection will be at its strongest if tribes remain united against anyone who seeks to undermine tribal sovereignty. The tribal gaming industry is very successful and has built a highly sustainable industry.
“That isn’t to say that we are not interested in speaking to these companies and their representatives. I firmly believe that a cooperative approach borne out of a respect for our tribal governments and institutions will be beneficial to everyone.”
