An initiative to legalize sports betting in California faltered in January after two ballot measures that sought to grant tribes exclusive rights were withdrawn due to strong opposition from tribal groups in the state. Eagle1 Acquisitions Corp, the organization backing the proposition, made several amendments to its ballot initiative in December to garner more support from tribes, but these efforts ultimately did not succeed.
The California Nations Indian Gaming Association (CNIGA) reacted to the failure by cautioning that it should serve as a warning for future attempts to legalize sports betting in California without tribal involvement.
Jason Giles, Executive Director of CNIGA, views collaboration between operators and tribes positively. He anticipates more fruitful outcomes when a new legalization effort is undertaken in 2026, especially with the 2027 Super Bowl scheduled for Los Angeles, presenting a significant opportunity for lawmakers to pass a sports betting bill beforehand.
"There is most certainly a path to online sports betting in California – and it starts with the tribes," Giles remarked ahead of the Indian Gaming Tradeshow and Convention, taking place at the Anaheim Convention Center from April 8 to 11. "I don’t think it is inevitable as some people have said recently, but we are seeing positive signs, such as FanDuel and DraftKings engaging 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 was significant for tribal sovereignty in the U.S., especially as state governments sought greater control over Indian Country. A federal appeals court reaffirmed a compact between Florida and the Seminole Tribe, resulting in a monopoly for the tribe on statewide mobile sports betting. In November, the Seminole Tribe’s mobile betting operator, Hard Rock Bet, was relaunched after the D.C. Circuit Court opted not to rehear the case. The Florida Supreme Court later dismissed a motion to suspend Hard Rock Bet.
Later, in February 2024, the Department of the Interior introduced updated regulations to enhance the clarity and transparency of Indian gaming compacts. Giles praised this move, stating, "We are pleased that the Biden-Harris administration is demonstrating commitment to Indian country. We’re also very hopeful that they will provide a strong platform for business growth.
"Indian Country is stronger than ever and will, through our tribal leadership, continue to defend the rights of tribal communities."
According to the National Indian Gaming Commission’s annual report, tribal gaming revenues rose by 4.9% to $40.9 billion in 2022, marking the highest year-on-year increase ever recorded in the sector. Tribal gaming has rebounded since the Covid-19 pandemic, positioning itself for a successful future.
Giles expressed confidence in the continued strength of tribal gaming, emphasizing collaboration with entities that respect tribal values and innovations. "Tribal gaming will remain strong through a regulatory framework and a sustainable long-term approach to the industry’s future," he noted.
"Tribal communities are open for business and open 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 technologies so that we can continue to offer world-class experiences for customers."
Despite the successes of Indian gaming, concerns persist regarding increased interest from politicians and commercial gaming entities. Giles remains optimistic that tribal gaming can fend off competition, provided tribes collaborate effectively.
"Protection will be at its strongest if tribes remain united against anyone who seeks to undermine tribal sovereignty," Giles stated. "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 co-operative approach borne out of a respect for our tribal governments and institutions will be beneficial to everyone."
