Major US sports betting giants lock horns with tribal alliances

Major US sports betting operators, including FanDuel, DraftKings, BetMGM, and Fanatics, have unexpectedly united with leading California Indian tribes to strongly resist a proposed sports betting initiative in the state.

Paving the way for November ballot

The Sports Betting Alliance (SBA), a formidable coalition, has recently made its stance clear, taking a collective stand against the initiative presented by Kasey Thompson (photo above), and Reeve Collins of Eagle 1 Acquisition Co, alongside Ryan Tyler Walz.

The SBA, communicating through a spokesperson, issued a media statement on Tuesday, affirming their commitment to refrain from providing financial support or any endorsement for the sports wagering initiatives formulated by Thompson and Collins.

Seasoned gaming industry professional, Kasey Thompson is unwavering in his commitment to introduce sports betting to California, having initiated the promotion of his concept in the state in 2023. He is the creator of All In magazine is of the opinion that the tribes should play a significant role in the industry.

The signature-gathering process, crucial for paving the way for the initiatives on the November ballot, encountered a setback as the alliance outlined three compelling reasons for their opposition.

Firstly, the SBA argued that the initiative is destined to fail without substantial tribal support, potentially impeding productive conversations for years. Secondly, they asserted that the proposed initiative is designed to impede market growth, adversely affecting various stakeholders, including commercial operators, Californians, gaming tribes, and RSTF tribes. Concurrently, the unregulated illegal market stands to thrive. Thirdly, the alliance criticized the initiative’s foundation, expressing concerns about establishing a business based on customers acquired illegally through offshore operations, falling significantly short of their regulatory standards.

Kasey Thompson sets the record straight

In response to the coalition’s opposition, Kasey Thompson clarified that he had not sought financial contributions from the operators for the campaign. He attributed their resistance to the initiative’s perceived benefits to tribes, suggesting conditional support if there was greater tribal backing.

This current clash resonates with a historical rivalry, as these sports betting operators were part of a group that funded online sports betting Prop. 27 in the previous election. Prop. 27 faced strong opposition from leading California gaming tribes and was decisively defeated by voters. Since then, operators have been diligently working to repair relations with California tribes, fostering a collaborative spirit for potential future endeavors.

Last month, in a calculated decision, 28 gaming tribes, accounting for 99 percent of the financial resources opposing Prop 27, penned a letter voicing their resistance to the proposed initiative and called on its advocates to rethink. The operators, by siding with the tribes against a disliked initiative, could be setting the stage for potential partnerships in the ever-evolving sports betting scene in California.

As tension escalates between industry giants and tribal alliances, the fate of California’s sports betting initiatives hangs in the balance, with potential collaborations shaping the future of this high-stakes industry.

Related topics:

California AG proposes two sports betting measure pre-election (www.cefyngauden.com)

Fanatics elevates sports betting in mountain state of Vermont (www.cefyngauden.com)

Seminole backs DeSantis in Florida sports betting case (www.cefyngauden.com)