California has for some time now developed a reputation for being—how shall we put this—a little bit out in left field. In 2022, they had two propositions on the same ballot with opposite agendas when it comes to sports betting. One favored tribal casinos more than the other.
Both went down to a stinging defeat.
Here it is a year later, and there are now two related ballot initiatives recently filed. Though the propositions involve tribal casinos, they have almost no support from said tribes. Or input, which might explain the lack of support. Representatives from key California gaming tribes told PlayUSA they were not contacted or consulted.
That is not a good way to establish a cohesive approach to an issue so thoroughly crushed a year ago.
The initiatives filed October 27 with the state attorney general office, titled the Sports Wagering Regulation and Tribal Gaming Protection Act, offers exclusivity to California tribes.
New revenue will go towards homelessness and mental health throughout California with the creation of the California Homelessness and Mental Health Fund. Participating tribes will contribute 10 percent of adjusted sports wagering gross revenue into the fund and 15 percent to revenue sharing with limited and non-gaming tribes.
However, the proposals already face staunch opposition from major California tribes. Individuals involved in the filing dealt with the Pala Band of Mission Indians on prior issues. Pala Chairman Robert Smith had been in contact with some tribal leaders in October regarding plans to file a sports betting bill. But he didn’t.
Jacob Mejia, vice president of public and external affairs for the Pechanga Development Corporation and spokesperson for the Coalition for Safe and Responsible Sports Wagering, rejected the filing.
“As far as we are concerned, this is a tribal measure in name only. We are not aware of any tribes having drafted this initiative,” Mejia told PlayUSA. “It sounds an awful lot like the ballot measure that was crushed by 82 percent of voters less than a year ago.”
Reeve Collins, co-founder and CEO of Pala Interactive, an online gaming platform created by the tribe—and sold to Boyd Gaming—is listed as the contact for the initiative filings. The filings were also signed by Ryan Tyler Walz.
One proposal provides a full framework for California sports betting under Indian tribes. The other amends the state constitution to spell out that the legislature can only authorize sports betting under the umbrella of an Indian tribe.
Representatives from the Pechanga Band of Luiseño Indians and the San Manuel Band of Mission Indians issued statements saying they were not involved in the process.
The statement from San Manuel took a slightly more reserved tone but also made clear the tribe’s disinterest:
“We were not involved in the development of these initiatives. San Manuel respects the sovereign rights of all tribes but agrees with CNIGA that any effort affecting tribal governments needs to be made by the tribes,” Dan Little, chief intergovernmental affairs officer for San Manuel, said.
Kasey Thompson, another Pala Interactive co-founder, sent tribal leaders a letter following the filing. Thompson went by the title of CEO of Eagle 1 Acquisition Company, which also included Collins.
At a time when it appeared no California tribes or commercial operators were interested in filing a sports betting initiative for 2024 following the 2022 election failures, Thompson explained why he believes now is the time for a filing.
“We do not believe that waiting another two years is in the best interests of the California tribes or the people of California. The California tribes and the State itself are leaving significant revenue on the table, and we want to help reverse that situation now. The time to submit a sports wagering proposal in California is now.”
However, industry sources told LSR that tribal leaders found the letter “offensive” and “patronizing.”
As obtained by PlayUSA, the letter states:
“We have met with a number of California tribes, and we would like to meet with you and all other tribes over the next 30 days so that we can ensure that our initiative represents your interests and reflects your input. We do not plan to proceed unless we have the full support of the California tribes.”
CNIGA Chairman James Siva released a statement: of his own.
“The California Nations Indian Gaming Association is deeply disappointed that the sponsors of the two recently filed initiatives did not first reach out to the State’s largest tribal gaming association for consultation and input.
“Decisions driving the future of tribal governments should be made by tribal governments. While the sponsors of these initiatives may believe they know what is best for tribes, we encourage them to engage with Indian Country and ask, rather than dictate.”
The initiatives contain pages of details about a somewhat complicated model of operating sports betting in the Golden State:
- Sports betting could be offered no earlier than September 1, 2025.
- It would be a hub-and-spoke model.
- All sports betting operations would be branded exclusively under the tribe’s federally recognized name. Therefore, co-branding with a commercial online or in-person sports betting operator is prohibited.
- Commercial sports betting operators who are managing or consulting on tribal sports betting operations must register as major sports betting vendors.
- In-person registration must occur for an online sports betting account to be opened.
- The legal sports betting age would be 21 or over.
- Professional and college athletic events would be eligible for bets. High school or lower-level athletic events would be ineligible.
- Sports betting tribes would need to contribute 15 percent of adjusted gross gaming revenue to the tribal sports wagering revenue sharing trust fund and contribute 10 percent to the Homeless and Mental Health Fund.
On top of ignoring the tribe, the two acts were filed far later than they should to qualify for the November 2024 election.
To have 180 days to collect signatures, filers should submit an initiative by August 22, especially given a 65-day waiting period before circulating the petition.
So the petitioners wouldn’t be able to begin collecting signatures until January, providing just four months to gather 874,641 valid signatures required to make the ballot. Initiatives must be qualified by the secretary of state by June 27, 2024, at least 131 days prior to the election.
Victor Rocha, conference chairman of the Indian Gaming Association, posted on X: “This thing is so dead. Kasey Thompson and Ryan Tyler Walz are morons. You heard it here first.”
“This is a case study for how not to do it,” gaming industry veteran Richard Schuetz said. Schuetz added via X: “The next California general election will be on November 5, 2024. I am going to be busy until then, so thought I would file my story now: Neither tribal gaming measure will make the ballot, and if they do, they will fail. Thank you for your time.”
Howard Glaser, global head of government affairs and legislative counsel at Light & Wonder, also posted: “Whoever is bankrolling this would be better off putting their money on a roulette wheel. Or save time and just burn it.”
