Two new ballot proposals concerning sports betting have been filed in California, featuring Reeve Collins, co-founder and CEO of Pala Interactive, as the media contact. Pala Interactive, established by the Pala Band of Mission Indians in 2013, was acquired by Boyd Gaming in November 2022. The ballot submissions occurred on October 27.
One ballot, titled The Sports Wagering Regulation and Tribal Gaming Protection Act, provides a comprehensive outline of how sports betting would operate under tribal control in California. This proposal seeks to amend Article IV, section 19 of the California Constitution, requiring tribes to allocate 15% of their adjusted sports wagering gross gaming revenue (GGR) to a tribal sports wagering revenue sharing trust fund. Furthermore, tribes would need to contribute 10% of their adjusted sports wagering GGR to the California homelessness and mental health fund. All advertising related to sports betting would be restricted to individuals aged 21 and over.
According to the proposal, tribes must team up with licensed sports betting operators, who would act as vendors. These operators need to be licensed by the Tribal Gaming Agency and receive approval from the California gaming agency.
The second proposal, known as The Tribal Gaming Protection Act, asserts that sports betting in California will be exclusively offered by tribes.
Victor Rocha, conference chair at the Indian Gaming Association, expressed frustration over Pala Interactive's alleged request to tribal leaders in California to refrain from speaking to the media until they had discussed the matter with leadership. Rocha criticized their approach on X, formerly known as Twitter, stating, "Can we talk about the ignorance of the fools in Pala Interactive/Boyd. These idiots actually sent a letter to California tribal leaders asking them not to talk to the press until they had a chance to talk to leadership."
Responding to Rocha's claims, David Strow, vice-president of corporate communications for Boyd Gaming Group, stated, "That wasn't us, Victor. The former Pala Interactive (now Boyd Interactive) had nothing to do with that filing." The proposals have also faced backlash from the California Nations Indian Gaming Association (CNIGA), with the organization noting their disappointment at not being consulted beforehand. They released a statement asserting, "The California Nations Indian Gaming Association is deeply disappointed that the sponsors of the two recently filed initiatives did not first reach out to the State’s largest tribal gaming association for consultation and input. Instead, CNIGA and our member tribes were alerted to their existence when they were filed with the Attorney General today. Decisions driving the future of tribal governments should be made by tribal governments. While the sponsors of these initiatives may believe they know what is best for tribes, we encourage them to engage with Indian Country and ask, rather than dictate."
The timing of these ballot proposals comes as a surprise given the recent rejection of sports betting initiatives by California voters last November. The next election is set for November 5, 2024.
Throughout 2022, support for sports betting in California fluctuated, with a favorable poll released in February. In May, it was confirmed that a proposition for sports betting would be included on the November 2022 ballot alongside another initiative backed by tribal gaming groups, the Tribal Sports Wagering Act Initiative. However, California Democrats advised voters to oppose the operator-backed Proposition 27, which was also on the ballot. Both of these proposals ultimately met with rejection from voters.
Pala Interactive now has 180 days to collect the necessary signatures for the ballot using a random sample method. This deadline extends to late April 2024, leaving a narrow window for filing. The company requires a total of 874,641 signatures for the constitutional amendment ballot, and election officials must verify a minimum of 500 signatures to proceed with the random sample method. Pala Interactive has until April 23, 2024, to submit their petition to county election officials. When submitting a ballot to the attorney general, a 65-day period is mandated between submission and the start of signature collection, which will begin on January 1, 2024.
