Referendums supporting sports betting in California went down to defeat not once but twice in the 2022 midterms. One referendum supported a tribal ballot, the other backed commercial operators. Both got creamed, although tribes maintained that they were more than happy to lose so long as operators did too.
But last fall, word came down that Eagle1 Acquisition Corp. prepared two ballots for approval. The tribes were not consulted in advance and because of this they opposed the idea.
A group of major sportsbook operators urged opposition too, and so Eagle1 executives pulled the plug on the initiatives in January even though they technically increased the amount that would be realized by the tribes.
A statement from the California Nations Indian Gaming Association (CNIGA) read: “We are pleased that in the face of widespread tribal opposition, the backers of two initiatives have kept their word and withdrawn what we could only regard as a cynical attempt to legalize sports wagering and online betting in California.
“These initiatives attempted to use tribes’ good names to cleanse illegal offshore, online gambling corporations with an appalling track record of malfeasance. That was another effort: clean up illegal operations.
“Let this failure also be a warning to others that seek to dubiously enter the California gaming market. Using tribes for your own gain will get you nowhere.”
The details of Sports Wagering Regulation and Tribal Gaming Protection Act gave tribes 15 percent of GGR for the tribal wagering revenue trust fund and 10 percent for homelessness and mental health. And they needed to partner with a sportsbook operator. To garner more tribal support, the 15 percent figure jumped to 25 percent.
BThe ballots received criticism from the CNIGA from the start, with the group expressing disappointment that they were not contacted for consultation.
“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.
“Instead, CNIGA and our member tribes were alerted to their existence when they were filed with the attorney-general October 27 2023.”
“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.”
It’s not just a lack of tribal support. There is a little support for sports betting in California.
Brendan Bussman, managing partner at B Global Advisors, was not surprised by the failure of the new ballots. Bussmann pointed to the need for compromise if California is to one day have a legal sports betting market.
“You’re looking at an environment where only 30 percent of the people said they like sports betting,” Bussmann told iGB. “They need to find a compromise on the tables. Arkansas for example, or Florida, although I’m not saying they’re ideal models.
“Tribes made it clear that they don’t want this.”
