Legality of fantasy sports also in question

G2E: California tribal leader says betting initiative could be on ballot on 2026 but probably 2028

James Siva, chairman of the California Nations Indian Gaming Association
2024-10-10
Reading time 1:40 min

A new tribal sports betting initiative in California could be on the ballot as soon as 2026, but it is more likely to emerge in 2028, according to a key tribal leader. Speaking at the Global Gaming Expo (G2E) in Las Vegas on Tuesday, James Siva, chairman of the California Nations Indian Gaming Association, said tribes are restarting discussions on the future of legal sports betting in the state.

“Maybe 2026, but probably 2028,” Siva said during a panel on tribal sovereignty and sports betting. He emphasized that any initiative brought forward by the tribes would likely include provisions for online casino gaming. “We’re already looking down the road,” he added, highlighting the need to consider the broader scope of online gambling.

With over 100 tribes involved in California’s gaming landscape, reaching a consensus on the specifics of the sports betting initiative will be a challenging process. A meeting is scheduled for later this month to begin discussions, but further meetings are expected.

Tribes are also gearing up for legal action against local cardrooms over the use of third-party proposition player services (TPPPS), which they argue violate their exclusive rights to gambling under state and federal law. The tribes now have the right to sue these cardrooms following a recent law signed by Governor Gavin Newsom. The lawsuit must be filed by April 1, 2025.

Indian Country contends that TPPPS, which act as the bank in games like blackjack and roulette, infringe on tribal exclusivity. This legal fight underscores the long-standing tension between California's tribes and cardrooms, which coexisted for years before the introduction of TPPPS in 2007.

Adding to the legal complexities, the California attorney-general’s office is reviewing the legality of daily fantasy sports (DFS) at the request of Senator Scott Wilk. The key question is whether DFS constitutes a game of chance or skill, a determination that could affect tribal sovereignty. 

Siva expressed hope that the ruling would favor the tribes but warned that if fantasy sports companies pose a threat to tribal rights, the tribes would respond. “If fantasy companies act in a way that threatens tribal sovereignty, the tribes will fight,” he said.

As California remains the largest potential online gaming market in the U.S., the competition to legalize sports betting is expected to be fierce. Siva hinted that any future initiative would be tailored specifically to California’s unique regulatory and market landscape.

“We have started to think outside the box... What’s going to come out of California will be new and unique,” Siva said.

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