In California, gaming industry insiders recently speculated that talks were afoot between commercial sports betting companies and California gaming tribes, and suggested the two sides could reach a compromise on their separate sports-betting ballot measures.
Not so. On October 29, the tribes came out four-square against two competing proposals—one from the online sportsbook companies, and one from the state’s card rooms—that could go up with theirs at the polls next November.
Two tribal coalitions, whose members include the Agua Caliente Band of Cahuilla Indians, the Morongo Band of Mission Indians, the Pechanga Band of Luiseño Indians and the San Manuel Band of Mission Indians, issued a statement of opposition to the two measures, each of which must garner at least 1 million voter signatures to make the ballot next fall.
Another measure, backed by the tribes, has already qualified for a referendum. It would permit in-person betting at casinos and racetracks, but exclude card rooms and other entities, including mobile sportsbooks.
The card-room initiative would allow tribes, licensed horse racetracks and professional sports teams along with their own operations to offer in-person, online and mobile sports betting, according to the Orange County Register. That measure also would let card rooms offer more types of games and would set a 15 percent tax on sports betting profits, with revenues going to help the homeless, public education and mental health.
The other measure, supported by online sportsbooks including DraftKings, would allow in-person betting at tribal casinos, which could offer online betting through partnerships with online betting companies. It includes a 10 percent tax on online betting profits and also would earmark the money for the “California Solutions to Homelessness and Mental Health Support Account.”
Supporters of the card-room measure have until April 18, 2022, to collect the necessary number of signatures. Supporters of the sportsbook measure are still waiting for permission from the California attorney general’s office to gather signatures.
In a statement, the California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations (TASIN) said the measures backed by card rooms and online sportsbooks would “seriously undermine tribal sovereignty and the voters’ repeated support for Indian gaming in California.”
“These deceptive measures were written by and for the sole financial benefit of their corporate sponsors and funders,” said Anthony Roberts, chairman of Yocha Dehe Wintun Nation. “These measures would be bad for California and bad for tribes. We are prepared to wage a vigorous and well-funded campaign to educate the voters and ensure the measures are defeated.”
Both measures opposed by the tribes “would authorize the largest expansion of gaming in the state’s history, disrupting the commitment that California voters have made to Indian tribes for over two decades,” the statement read, adding that tribal casinos employ almost 125,000 people in the state and generate $20 billion for California’s economy.
“Don’t be fooled,” said Chairman James Siva of the California Nations Indian Gaming Association. “These measures are not a fix to homelessness, but rather a massive explosion of gaming that will directly undercut tribal sovereignty and self-sufficiency.”
“We remain committed to responsible sports wagering at tribal casinos that have a proven track record of operating safe, regulated gaming in this state,” said Chairman Greg Sarris, Federated Indians of Graton Rancheria. “We are prepared to make our case to the voters, just as we have in previous elections, to oppose these deceptive and risky propositions.”
The field just got more crowded, according to the Sacramento Bee, with yet another proposal in the mix. This month, the Rincon Band of Luiseno Indians, the Federated Indians of Graton Rancheria and Wilton Rancheria sent a letter to all federally recognized tribes in the state, asking them to consider a new proposal that would consolidate control over in-person and online sports betting into tribal hands.
According to the letter, the “California Tribal Government Mobile & Retail Sports Wagering Act of 2022” would allow in-person and online sports betting only through federally recognized tribes. Online bets would be made through servers on tribal lands. Under the initiative, horse racetracks, commercial card rooms, sports franchises, corporate online operators or others would not be eligible to offer sports wagering.
The tribes said they intend to file the measure with the Secretary of State this week.
“If the DraftKings Measure or the Cardrooms Measure passes in November 2022, tribes would lose their exclusivity to class III gaming in California,” the letter said. “Such passage would accelerate the legalization of online gaming by non-tribal interests, threatening the existence of Indian gaming as we know it.”
The three tribes that introduced the latest measure, Rincon, Graton and Wilton, all partner with out-of-state gaming companies to run their casinos. Tribal lobbyist David Quintana took issue with those relationships.
“This should never be called a tribal proposal,” he said. “It should be called what it is: a proposal by out-of-state operators with tribal stalking horses.”
