California Plans New Proposal for Legal Sports Betting

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Sports betting operators and tribal leaders collaborate on legal betting framework in California.

News Summary

In California, sports betting operators and tribal leaders are collaborating on a new proposal to legalize sports betting, following previous unsuccessful initiatives. This proposal seeks a regulatory framework that respects tribal interests while allowing for online betting. The initiative, introduced at the Indian Gaming Tradeshow in San Diego, aims to establish a governing body to oversee activities. Although concerns about compliance and revenue-sharing exist, stakeholders are optimistic that this collaborative approach can pave the way forward for sports betting in the state by 2028.

California – Following a challenging ballot initiative in 2022 aimed at legalizing sports betting, sports betting operators and tribal leaders in California are working on a new collaborative proposal. This initiative seeks to establish a framework for legal sports betting in the state through the joint involvement of California tribes and leading sports betting companies, including prominent members of the Sports Betting Alliance (SBA) like DraftKings and FanDuel.

The proposal was unveiled at the Indian Gaming Tradeshow & Convention held in San Diego and suggests forming a unified governing body that would oversee online sports betting activities in California. This body would ensure that while tribal interests are upheld, sports betting operators can collaborate with them to create a regulated environment for betting activities.

Currently, the only legal gambling options available in California are tribal casinos, the state lottery, horse racing, and card rooms, with all other forms of betting remaining illegal. This has historically prompted residents interested in non-tribal casinos or online betting platforms to travel out of state to participate in such activities.

The proposed collaboration comes after a contentious battle during the previous year when tribes and sports betting operators spent over $200 million campaigning for competing propositions to legalize sports betting. Proposition 27, which aimed to allow commercial operators to offer sports betting without tribal oversight, was rejected by 80% of voters. In contrast, Proposition 26, proposing tribal-controlled sports betting, garnered less than 30% support.

The latest SBA proposal aims to facilitate competition among betting operators while ensuring that their activities remain under the new governing body’s oversight. Representatives believe this collaborative approach could provide a viable pathway forward, potentially resolving previous conflicts between tribal interests and sports betting operators. Some tribes had previously explored similar regulatory frameworks, indicating a shift toward open dialogue.

While discussions are progressing, there are concerns regarding compliance with the Indian Gaming Regulatory Act, as voiced by leaders in the California National Indian Gaming Association (CNIGA). Furthermore, tribal leaders have expressed the necessity for equitable revenue-sharing structures to ensure all tribes benefit from the introduced sports betting market. One tribe notably emphasized the importance of securing a substantial share of the revenue generated by sports betting activities to support their communities.

In response to the issues raised, the SBA has established a tribal advisory board aimed at incorporating tribal leadership into conversations surrounding the legalization process, ensuring tribal voices are heard as discussions unfold. This step reflects an acknowledgment of the complex nature of balancing tribal rights with commercial interests in the gaming industry.

Looking ahead, tribal governments plan to engage in further discussions regarding this proposed framework. Leaders emphasized that crafting an acceptable model would require time and collaborative effort. Importantly, tribal leaders have announced they will not pursue sports betting legislation on the ballot in 2026 and instead advocate for a more inclusive approach toward potential legalization by 2028.

This renewed initiative signals a potential shift in California’s approach to sports betting, with stakeholders working to address past grievances while seeking a viable path forward that respects the interests of both tribal communities and commercial operators.