California’s tribal gaming leaders are stepping up their efforts to combat what they describe as a growing threat posed by unregulated sweepstakes gaming and Daily Fantasy Sports (DFS) 2.0 operators. In a recent webinar hosted by Victor Rocha, Chair of the Indian Gaming Association (IGA) Conference, alongside IGA Executive Director Jason Giles and California Nations Indian Gaming Association (CNIGA) Chair James Siva, the tribal leaders expressed their concerns over these operators exploiting legal loopholes to offer unregulated and untaxed gaming to Californians.
During the discussion, Siva and Rocha stressed the urgency of addressing this issue, as they believe it undermines tribal sovereignty and California’s gaming laws. The tribes, long protectors of regulated gaming in the state, now find themselves facing a significant challenge in the form of these unregulated gaming platforms. This ongoing battle, according to Rocha, is only beginning, as they plan to take a multi-faceted approach to safeguard their interests.
A New Threat to Tribal Sovereignty
Rocha opened the discussion by recalling how the issue of sweepstakes gaming and DFS 2.0 caught tribal leaders off guard, likening the sudden rise of these platforms to a scene from the film Blade. He shared how, during an off-site event at the Global Gaming Expo (G2E) in Las Vegas, he realized that sweepstakes gaming was a significant topic of conversation. “Everyone was talking about sweepstakes gaming,” Rocha said, according to SBC Americas, adding that he was shocked by how widespread the issue had become without the tribes noticing the full scale of the threat.
The issue, as highlighted by both Rocha and Siva, is that these sweepstakes platforms operate in legal gray areas, using loopholes in California’s gaming regulations to bypass the stringent rules that apply to the state’s established gaming operations, including tribal casinos. Siva emphasized that Daily Fantasy Sports platforms, despite their popularity, are still illegal in California. “In California, DFS is illegal. It happens, but it is illegal,” Siva said, reinforcing the tribes’ stance on the matter.
Efforts to Address the Problem
The tribal leaders made it clear that they are not standing idly by. They have devised a comprehensive plan to address the growing threat posed by these platforms, which includes engaging with various state and federal bodies. The California Attorney General’s office, which has yet to release an official opinion on the legality of DFS in the state, is a key focus of the tribes’ efforts. Siva expressed hope that the delay in the Attorney General’s decision might work in the tribes’ favor. “I think if it had gone fast, it would have been bad for tribes,” he said.
In addition to pressuring state officials, CNIGA is also taking its fight directly to major tech companies. Siva revealed that CNIGA has sent a letter to Google, urging them to remove apps from their Play Store that promote what they claim are illegal gaming operations. Next in line are Apple and other app stores that facilitate the distribution of these platforms.
Furthermore, Rocha mentioned that some operators, such as PrizePicks, have approached the tribes to seek partnerships, but he was firm in his rejection. “That is a transgression against the tribes to come in after the fact and look for permission,” Rocha said, making it clear that the tribes would not tolerate companies already operating illegally to seek retrospective approval.
Safeguarding Tribal Exclusivity
The webinar discussion repeatedly circled back to the importance of protecting the tribes’ exclusive rights to gaming operations in California. Siva and Rocha both criticized the state’s apparent leniency toward sweepstakes gaming and DFS 2.0 platforms, accusing the government of turning a blind eye to these operations due to their popularity with consumers. Rocha argued that allowing these platforms to continue unchecked is a violation of the tribal gaming compact, which grants tribes the exclusive right to offer certain forms of gaming in the state.
“We will stand up and protect our sovereignty every day of the week,” Rocha declared, signaling the tribes’ readiness to fight for their gaming rights through legal and regulatory channels. He emphasized that while the tribes are not opposed to new gaming platforms entering California, these businesses must respect tribal sovereignty and engage in proper partnerships with the tribes.
