DraftKings CEO on California Sports Betting Collaboration: There is No Other Way to Do It

If you are looking for an exact timeline on the legalization of California sports betting, you will continue to be out of luck. On the other hand, if you are looking for signs of progress from the stakeholders who will be tasked with expanding gaming laws in The Golden State, you will be thrilled at the latest developments.

Speaking at a recent annual trade show, DraftKings CEO and founder Jason Robins confirmed that online sportsbooks in the United States will be working alongside California tribal nations on the sports betting issue.

“There is no other way to do it,” he said of collaboration, per Brian Joseph of Capitol Weekly.

Robins’ sentiments echo much of what we know about the future of sports betting in California. Indeed, it is hard to imagine legalization coming without collaboration between sportsbooks and tribal leaders.

In fact, we have already seen what happens when there isn’t any. Tribal nations sponsored their own California sports betting measure back in 2022. Under their bill, operations would be exclusive to the state’s tribes and subsist on retail locations. Mobile betting sites, meanwhile, introduced their own proposition. Theirs sought to legalize online sports betting in California on a larger scale.

What happened next is proof of why tribes and sportsbooks must work together. Both measures flopped during the 2022 election. The initiatives were so unsuccessful that stakeholders from either side seldom bothered to revisit the issue in time for the 2024 election. 

On top of all, as the legalization of online sports betting in the United States continues to become a country standard, The Golden State does not appear on course to propose any 2025 legislation, either. So yes, signs of collaboration are technically a positive development. But is this dialogue set to take the form of an official initiative anytime soon?

Other Mobile Operators Echo Importance of Tribal Collaboration to Legalize California Sports Betting

DraftKings is not the only online sportsbook in the USA to reach this revelation. Others have come out and conveyed similar stances. Some even echoed this message during the same panel on which Robins participated. Here is Brian Joseph over at Capitol Weekly with more details:

“Robins was joined on stage by Christian Genetski, president of FanDuel, and Victor Rocha, a high-profile leader of California tribes who serves as the conference chair of the annual tradeshow and also founded the tribal gaming news site Pechanga.net. It was a friendly conversation about the intersection of sports betting and tribal operations across the country. ‘We want to understand what tribal sovereignty means to the tribes,’ Genetski said before a packed crowd at the San Diego Convention Center, the site of this year’s Indian Gaming Tradeshow & Convention.

“The panel discussion, titled ‘The Power of Partnerships: Aligning with Established Gaming Brands,’ was promoted as an exploration of ‘collaborative models that leverage brand recognition, shared resources, and industry expertise to drive growth while preserving tribal sovereignty.’ And indeed, Rocha asked Genetski and Robins about their companies’ partnerships with tribes in other states, which gave the executives a chance to expound on their corporate efforts to attend pow wows and get to know tribal communities. ‘We understand we’re going to be in a relationship for decades’ when FanDuel partners with a tribe, Genetski said.”

This, again, shows a ton of progress. Especially relative to 2022. But the ethos of that panel is a mouthful. It can even feel redundant. How can the state preserve tribal sovereignty while allowing online sportsbooks to capitalize on California sports betting?

The Path Forward for Sports Betting in The Golden State Remains Unclear

Answering the above question is difficult. Technically, we have yet to see if it’s even possible.

Plenty of different theories continue to be bandied about. The most popular scenario seems to involve a retail California sports betting launch to kick things off. From there, in a year or two, California online sportsbooks would then join the fold.

Still, this runs somewhat counter to tribal sovereignty. As many point out, a year or two won’t be enough to protect the tribal nations’ market share. Brand recognition will always give places like FanDuel and DraftKings a leg up on lesser-known operators. Whether they launch immediately, a year later or two years after tribal nations, corporate sportsbooks will cannibalize a lot of the business.

That is why many in support of tribal sovereignty want any online California sportsbooks operating in limited capacities. It again isn’t too clear what this means. Previously, proposals consisted of online operators offering their mobile interfaces and expertise in supporting roles. These companies would receive a cut of the California sports betting revenue. They would not be operating independently.

Suggesting this setup did not fly in 2022. It may not work in 2026, either. Experts keep estimating that California sports betting online will be the most lucrative in the country. Mobile operators will want more than limited access in the long run.

Perhaps this is why many believe the future of sports betting in California remains up in the air. Sportsbook executives and tribal leaders agree they must collaborate. They even know this collaboration is important not just now, but for decades to come.

These same people do not, however, seem to understand what working together will look like. The continued absence of a bill says it all. 

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