An amended sports betting initiative that would support the homeless is feeding speculation that the group of sports betting operators behind the measure may be negotiating with the state’s gaming tribes.
The consortium, including Bally’s, BetMGM, DraftKings, FanDuel, Fanatics, Penn National/Barstool Sportsbook, and WynnBET propose legalizing mobile sports betting, to be accessed through a partnership with a gaming tribe. They are committed to spending $100 million to try to pass it and could spend more. Those are numbers that impress even gaming tribes. They first filed their proposed measure in August. Eighty-give percent of the taxes raised by it would be earmarked for homeless services.
Proponents have said that the proposal is complementary to the one proposed by a consortium of gaming tribes for retail only sports betting, limited to tribal casinos and racetracks. It would require commercial operators to acquire licenses through the tribes. Because they are complimentary, that voters could approve both propositions in tandem.
The amendment filed by the operators would appear to address some concerns that tribes have expressed about the proposal. Specifically concerns about tribal sovereignty and exclusivity, which a spokesman for the tribal consortium, Pechanga Vice President of Public Relations and External Affairs Jacob Mejia had said recently when discussing the proposals.
Those who have read the amended version and spoken to tribal representatives say that they feel less threatened by it, but not enough apparently to support it publicly. However, political observers feel that the operators would not have made the changes without talking to the tribes first.
One of the amendments was to clarify that if operators deal with tribes they, “platform providers,” would pay taxes. It also makes clear that the tribes would apply for the sports betting operator licenses, while the operators would apply for platform provider licenses. It clarifies that operators must deal with a California tribe.
Gaming tribes are reluctant to allow online sports betting, especially tribes with smaller casinos. One tribal leader has described online sports betting as “a bridge too far.”
However, gaming tribes also see the hazards in dueling sports betting measures, which could cancel each other out.
Meantime, the operators will need to gather nearly one million signatures between November and next summer in order to qualify for the November 2022 ballot.
At G2E in Las Vegas earlier this month, California Nations Indian Gaming Association Chairman James Siva commented, “And knowing who is behind this, I think they have a very good chance of qualifying.”
Another proposed sports betting measure that is also active is one proposed by several cities that host card clubs. That measure would allow sports betting a tribal casinos, card rooms and professional sports stadiums. Tribes, who have been battling card clubs for 20 years, have no problem publicly opposing that measure.
