Tribes and Sportsbook Operators Seem Ready to Collaborate on California Sports Betting

Evidence continues to point toward tribes and online operators collaborating on the next attempt to legalize California sports betting.

This represents quite the turn of events from 2022. The two sides went head-to-head in their efforts to legalize sports betting in California, with each proposing a separation initiative. The tribal-sponsored bill green lit sports betting exclusively for California tribes while the online sportsbook-backed measure would have allowed mobile betting sites to enter the market.

Both proposals flopped at the polls. So, too, did the relationship between the two parties. Over $400 million combined was spent by either side as part of their campaigns—the most for any initiative in California’s history. Few thought the tension would ever dissipate. And those concerns were given further merit during this past election cycle. A 2024 California sports betting bill never made it onto the ballot.

Initially, this seemed to portend a longer wait for the potential legalization of sports wagering. As it turns out, though, this may not be the case. Various developments over the past few months suggest tribes and online sportsbooks in the United States may be on the same page moving forward. And now, we have yet another sign that their relationship is heading in the right direction.

A Podcast Appearance is Making Waves for California Sports Betting Speculation

The latest indication that California sports betting is on a different track comes following…a podcast appearance. Here is Brian Joseph of Capitol Weekly with the details:

“Jeremy Kudon, president of the Sports Betting Alliance, which represents DraftKings, FanDuel, BetMGM and Fanatics, recently spoke about the issue on the Tribal Gaming Association’s webcast The New Normal, co-hosted by Victor Rocha, a high-profile and outspoken leader in California’s tribal gaming community. Kudon’s appearance represents just the latest sign that tensions between online gaming operators and California gaming tribes are slowly easing in the wake of the hundreds of millions of dollars spent on 2022’s propositions 26 and 27, which both failed.”

People are apparently in disbelief that Kudon and Rocha have linked up. Rocha even told Kudon as much during their conversation.

Of course, speculating on the future of California sports betting merely because two individuals spoke isn’t the most scientific approach. But assigning value to their conversation is not erroneous conjecture. The contents of their discussion are proof of a more collaborative, or at least less icy, relationship between tribes and gaming operators.

Sportsbook Representatives Sound Open to Letting California Tribes Lead The Way

As part of their extensive dialogue, Kudon and Rocha addressed what happened in 2022. And Kudon, specifically, seemed to express regret for how the Sports Betting Alliance approached things. As transcribed by Joseph:

“I was involved in [Proposition] 27 in California. I think our intentions were pure, but we learned a lot from that. And we learned to allow the tribes to lead going forward…You always look at these things as the worst thing that could ever happen. And I think, ultimately, we’re going to see 27 and the failure of that to be one of the best things to happen. Because we learned how important it is to follow your lead and follow the tribes’ lead and work together and do what we can.”

It is not an understatement to call these sentiments monumental. And they echo other developments that point toward California leaning into the rising popularity of sports betting in the United States

FanDuel appears to be leading the way in this arena. Earlier this year, they made a string of hires that strengthened their ties to the tribal community. These moves include tapping San Manuel Band of Mission Indians Chief Operating Officer Rikki Tanenbaum as a senior vice president for strategic partnerships and convincing E. Sequoyah Simermeyer to leave his post as the Chairman of the Federal National Indian Gaming Commission.

What’s more, FanDuel CEO Amy Howe is on the record as calling 2022 California sports betting attempts a “spectacular failure” on the operators’ part. Almost needless to say, the vibes between the two parties seem good—better than ever. And it has led tribal leaders to believe a more productive California sports betting push will take place in advance of 2026 elections.

Questions Remain About the Ability for California Tribes and Sportsbooks to Collaborate

While recent developments no doubt paint a rosy picture, we still do not know what this collaboration looks like.

Will there be another California sports betting initiative proposed during 2025 legislative meetings? And will it be sponsored by both tribes in The Golden State and online sportsbooks in the USA?

On top of that, what will the terms of legalization be? Will online sports betting in California be part of the proposal? Or will the measure include language that grants exclusivity to tribes, with the option to partner with online sportsbooks down the line? If it’s the latter, how long are online sportsbooks in the United States willing to wait? Some have speculated they will be allowed to enter the market in 2028. Is that accurate? Could it be longer? Are online operators open to that sort of timeline?

If and when online California sports betting is legal, will mobile sites receive independent licenses? Or will they essentially be leasing out operations under tribal directions?

All of these questions, and more, still need to be answered. Rest assured, the prospect for sports betting in California seems more certain than it did a couple of years ago. But a lack of clarity continues to permeate the discussion. And that makes this newfound collaboration between tribes and sportsbooks something to closely monitor.

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