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For 3+ years, California has struggled to get any kind of online gambling legislation passed. Standing in the way has been the Tribal Indian Compact that gives California's Indian Tribes exclusive rights to most forms of gambling.
With the sports betting ballot initiative spot empty for the 2024 November election, both sports betting proponents and opponents are already gearing up for the 2026 mid-term election cycle. That includes the Indian community, corporate interests, and the opposition to both.
Currently, 38 states plus Washington D.C. and Puerto Rico have legalized sports betting (retail and or online) with 7 states also offering iGaming access. Since California is a unique market, Tribal leadership believes a unique approach to sports betting would be the right call.
At the recent Global Gaming Expo in the sports betting mecca of Las Vegas, James Siva, Chairman of the California Nations Indian Gaming Association Chairman told participants:
“We’ve watched what tribes in other states have done, but looking at the unique setup of California, we’re going to come up with something that is going to be a brand new framework for this because that’s the only way it’s going to work in California.”
This falls in line with previous comments made by Siva regarding convening a workgroup over the next couple of months. The workgroup's goal will be to develop a unique framework for sports betting that will serve as the Tribal community's 2026 ballot initiative.
In the process of developing this framework, the California Nations Indian Gaming Association Chairman feels compelled to create a framework that would work in any state. That's a huge task given there are 109 federally recognized Tribes in the U.S., each with unique circumstances and operating under varied compacts. The challenge is going to be getting a consensus on something that will benefit all concerned parties.
Siva can't yet commit to the direction in which the workgroup will go. What is clear Tribal exclusivity will be at the top of the list of what's included. If outside interests are permitted to have a piece of the sports betting pie, some of their shares will surely benefit local Tribes.
To start the process, Siva has stated that they are going to look at the sports betting structures being used in the aforementioned 38 states and 2 U.S. territories. They hope to find the pieces that work well while also straying away from the things that could cause issues.
This entire process could not come at a better time. Why? Several states are currently addressing the sports betting question. That includes Minnesota where a deal has been struck but not yet passed by lawmakers. The fear is politics could lead to further delays if the sports betting framework is not beneficial to all parties, including the government.
Other states that could be looking at legalizing sports betting in 2025 include Washington state, Oklahoma, and perhaps Texas as a longshot. More info should be forthcoming by the end of 2024.
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