The sports betting industry in California is facing a new challenge as gaming tribes in the state team up with the Sports Betting Alliance (SBA) to address the issue of sweepstakes gambling. The SBA, consisting of private sportsbook operators like DraftKings, FanDuel, and BetMGM, advocates for the legalization of sports betting nationwide and has previously clashed with California tribes over a failed betting ballot initiative in 2022.
In a recent podcast hosted by Indian Gaming Association’s (IGA) Conference Chairman Victor Rocha and Executive Director Jason Giles, SBA President Jeremy Kudon discussed the spread of sweepstakes casinos across the state and the grey area of daily fantasy sports. Kudon expressed his concerns about the unregulated nature of these platforms, likening it to a “pandemic” that is impacting tribal revenue as people opt for online gaming over visiting land-based facilities.
One of the main issues highlighted by Kudon is the disparity in regulations between licensed sports betting operators and sweepstakes casinos. While licensed operators have to adhere to strict licensing requirements, legislation, and high tax rates, sweepstakes casinos operate without the need for a license and offer casino-style games and sports predictions with virtual tokens, and some even provide real money prizes through redemptions.
Despite past conflicts between California tribes and the SBA, Rocha emphasized the importance of moving forward and collaborating to address the challenges posed by sweepstakes gambling. He acknowledged that while the battle between the two sides was difficult, it is now time for commercial operators and sovereign nations to unite against the common threat.
The alliance between California tribes and the SBA reflects a shared concern within the sports betting industry about the unchecked growth of sweepstakes casinos and the impact they have on regulated operators. By working together, these stakeholders hope to find solutions to address the issues surrounding sweepstakes gambling and ensure a fair and regulated gaming environment in California.