In a rare public appearance, Christian Genetski, president of FanDuel, and Jason Robins, co-founder and CEO of DraftKings, participated in a discussion about their companies' tribal gaming strategies. The event, moderated by Victor Rocha, conference chair of the Indian Gaming Association (IGA), marked the opening day of the Indian Gaming Tradeshow and Convention held in San Diego.
While the official focus was on how tribes and operators can "structure successful partnerships" for "long-term sustainability," the audience was well aware of the underlying tensions. In 2022, FanDuel and DraftKings, part of a coalition of commercial bookmakers, expended hundreds of millions on Proposition 27, which sought to legalize mobile sports betting in California. In response, tribes introduced their own initiative, Proposition 26, primarily to block Prop 27 rather than to enact their own measures. Ultimately, Prop 27 received only 17% of the vote, and its defeat left an atmosphere still charged with resentment, prompting bookmakers to seek reconciliation nearly three years later.
During the conference, Robins adjusted his earlier stance regarding future developments in the market. He stated, "There is no chance that there could possibly be online sports betting in California without tribes feeling like their sovereignty is being respected. That just wouldn't work. It's incompatible. We didn't understand [in 2022] that [California] is different."
Genetski echoed this sentiment, suggesting a collaborative approach. He highlighted that both companies strive for practical solutions that enable a fair chance for all stakeholders. "We want to be good actors in that conversation and try to get the right answer," he said.
The discussions about the future of sports betting in California were inevitable, given the history and the context of the tribal conference. Earlier this year, tribes indicated they would not pursue legalization efforts until 2026. However, both executives expressed urgency in ramping up those efforts.
Robins referred to California as a critical state for long-term growth, emphasizing the necessity of maintaining tribal partnerships. "Having tribal partnerships is absolutely essential, there's no other way to do it here. California is the one that can have the biggest impact on our growth long term," Robins stated, recognizing the state's economy as larger than many countries.
The executives also acknowledged other untapped tribal markets, such as Oklahoma, but reiterated California's prominence in discussions. Genetski insisted that there is potential for a win-win scenario in California. He remarked, "We know that conversation needs to be driven by the tribes in California… we are available to share any and all information that we have that can be helpful in that discussion."
Both Genetski and Robins elaborated on the necessity for tribes to find the right partners and the delicate nature of branding within these agreements. They pointed out that each tribe operates independently, requiring tailored discussions that cater to specific needs. Good partnerships are essential for market access, creating significant motivation for both parties to devise effective solutions.
“All the [stakeholders] need to find the right tribal partner,” Genetski noted, suggesting that the process should not feel like a game of musical chairs where someone risks losing out. He believed the need to satisfy all parties is more crucial in tribal gaming states than in commercial ones.
Using an example from FanDuel's partnership with the Mohegan tribe in Connecticut, Genetski explained how the tribe prefers FanDuel's branding for sports betting but not for igaming. Meanwhile, Robins cited DraftKings' collaboration with the Tulalip tribes in Washington. He mentioned their retail sportsbooks at Tulalip Resort Casino and Quil Ceda Creek Casino and expressed interest in expanding online when appropriate. "We would love to do more in Washington when the time is right, but that has to be something that everybody feels comfortable with and moves forward in the right direction," he said, underscoring the importance of mutual agreement in future endeavors.
