FanDuel Still Pushing for California Sports Betting

FanDuel is still holding out hope for California sports betting to be legalized in the near future.

The question, of course, is what this actually means. After all, the premise is somewhat obvious. Experts universally agree that online sports betting in California has the potential to be the most lucrative market in the United States. So, yes, FanDuel absolutely wants The Golden State to green light online operators.

Back in 2022, mind you, we saw just how much. Along with other online sportsbooks in the United States, FanDuel helped fund a proposition that would have legalized wagering throughout California. They met opposition in the form of a competing bill sponsored by tribes. The latter wound up having more support from policymakers in government. In the end, it didn’t matter. Both California sports betting bills failed.

To date, not much has changed. There will be no California sports betting initiative on the November 2024 electoral ballot. That means The Golden State will not be in a position to remake their gaming laws until 2026—at the absolute earliest.

So, again, we must ask: What does FanDuel’s continued interest in California sports betting actually mean?

FanDuel’s Attempt to Advance California Sports Betting will Feature More Pointed Public Messaging

It just so happens that FanDuel CEO Amy Howe addressed this very question during Flutter Entertainment’s Investor Day. Here is what she says on the matter (via BetCalifornia’s Steve Bittenbender):

“What has changed, though, since Golden State voters handily defeated a constitutional amendment to legalize California sports betting two years ago is FanDuel’s approach. CEO Amy Howe told attendees that the company is working to be ‘more proactive’ in its public affairs strategy pertaining to both expansion and sustainability ‘We've got to get out there and build the right coalitions and relationships to really strengthen and align with the right advocates,’ Howe said. ‘As you can imagine, doing this effectively is going to require additional investment, whether it's in lobbying, public affairs, coalition building or internal resourcing, and I am confident that we have an outstanding team. We have bolstered our team quite a bit in the last couple of years to make sure that we can win on both fronts.’”

This focus on public messaging is a big deal. While sportsbooks in the USA spent heavily on campaigning in 2022, they faced counter-messaging from opponents. That warring set of agendas did not go over well with the voting population. Multiple polls at the time showed a stark shift in public sentiment on California sports betting.

Avoiding a similar pitfall will be huge for future efforts. But that is easier said than done. Building and joining star-studded coalitions can help, but it isn’t always everything. Opposition will always be profuse on an issue as divisive as sports betting.

FanDuel’s New Approach Includes Hiring Former Tribal Officials

Rising above unavoidable opposition is not an exact science. However, on some level, it will all come back to collaboration with California tribes. A (rogue) sports betting bill proposed by what amounted to tech bros flopped in the past year because they didn’t include tribes in the planning process. Corporate sportsbooks will—and have—run into similar issues.

It seems FanDuel is very much aware of this roadblock. As a result, they are adding former tribal leaders to their staff, according to Bittenbender. “In February, the company hired former National Indian Gaming Commission Chairman E. Sequoyah Simermeyer as vice president for strategic partnerships,” he writes. “Simermeyer’s hire came just months after Rikki Tanenbaum, who previously served as the COO for the California-based San Manuel Band of Mission Indians, became a senior vice president for strategic partnerships.”

Immediately, it isn’t clear how much these hires will matter. But they should improve relations between tribes and online sportsbooks on the subject of California sports betting.

Tensions and counter-arguments ran high just a couple of years ago. Coming up with a joint agenda would go a long way. At the most basic level, having one California sports betting bill in 2026 ensures voters won’t be subject to as much combative campaigning. That alignment can only be considered positive for prospective approval ratings.

Is California’s Sports Betting Outlook Already Looking Up?

There is a chance FanDuel’s newfound approach to California sports betting may already be paying off. No, we do not have concrete evidence. However, the loose outlines of a plan and compromise appear to be forming.

As things stands, tribes are reportedly open to legalizing on-site California sports betting in 2026. From there, the state would then license online sportsbooks such as FanDuel by 2028.

Again, we must emphasize that this isn’t a formal proposal. It is also not a model that gets pulled out of thin air. If tribal leaders are thinking about this course, they have clearly discussed it with officials from certain online sportsbooks. Which ones? We can’t be sure. But FanDuel’s approach certainly suggests they would be among the operators involved in such a conversation.

If this type of blueprint pans out, it would represent major progress. Online sportsbooks in the USA previously did not want to wait or serve in partnership capacities. Tribes, meanwhile, did not seem very open to online operators independently entering the California sports betting market.

That all makes the 2026 and 2028 plans seem like a happy medium. To what end they are explored, though, remains to be seen. This could all end up going down as egregious speculation. Or it could mark the defining point for the future of California sports betting. It will be some time before we can know for sure. But chances are we will get some insight when legislative sessions begin early next year.

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