As California sports betting met a decisive defeat in the 2022 vote, tribal leaders found themselves in control over the timeline for the launch of online sports betting. However, new competitive dynamics have emerged, prompting discussions on whether California sports betting initiatives should be expedited. Learn more about ongoing debates in California’s gambling landscape.
Blue Lake Rancheria Tribal Chairman Jason Ramos noted at an SBC Americas panel that the initial talks ruled out any considerations for sports wagering until 2028 or 2030. However, due to existing illegal operations in the state, there is a push for these discussions to happen sooner.
California sports betting options
For Californians, most betting options are already available without delving into offshore operations. Sweepstakes sportsbooks have become popular by implementing a dual-currency model similar to sweepstakes casinos, offering pre-game bets, props, and parlays that lead to monetary rewards. Meanwhile, federally regulated exchanges like Kalshi reported over $500 million in handle during March Madness. More insights on Kalshi’s involvement in sports betting.
The oldest form in this space is daily fantasy sports contests, where opportunities for parlay-style predictions have long been established.
CFTC to chat with tribal leaders
Sports predictions, one of the competing sectors, is under the spotlight. The Commodity Futures Trading Commission (CFTC) plans a conference call with tribal leaders to discuss prediction markets this Thursday. Discover more about these discussions.
California sports betting competition a blessing?
Increasing external competition might not entirely be negative, said Wilton Rancheria Chairman and CEO Jesus Tarango at SBC. This competition has sparked valuable discussions among tribes. Tarango sees the potential for unity, with tribes collaborating to safeguard their interests and boost sports betting prospects within the state.
Tribes could earn $10M annually
The 2022 California sports betting initiatives lacked viability without tribal backing. Despite previous opposition from tribes against the sportsbook proposals, there’s potential collaboration on the horizon. Engagement through the Sports Betting Alliance, made up of major players like BetMGM, DraftKings, Fanatics, and FanDuel, represents a promising pathway. This model could offer tribes up to $10 million annually, enabling revenue sharing and collaboration on future initiatives.
California sports betting ‘success’ involves all tribes
In discussing the ideal structure for California sports betting, inclusivity of all tribes is vital, argued Tarango. Successfully integrating all 109 tribes promises equitable participation and influence. The Revenue Sharing Trust Fund, unchanged for two decades, underscores the need for change. Aligning operators with tribal leadership in this venture is seen as crucial to leveraging expertise and safeguarding tribal sovereignty, emphasized Pechanga Resort Casino’s Sean Vasquez.
