California is taking a bold stand against unregulated daily fantasy sports (DFS) platforms and sweepstakes operators that have been thriving in legal grey areas. This move is prompting intense discussions within the tribal community.
On Wednesday, tribal leaders gathered for a webinar hosted by the Indian Gaming Association (IGA) to discuss the state’s actions and the implications of Assembly Bill 831. The webinar, titled “Closing the Loopholes in California: Tribal-Led Efforts to Rein in Fantasy Sports and Sweepstakes Sites,” showcased how California’s tribal governments are tightening their grip on these controversial online gambling activities.
California’s Bold Move: A Line in the Sand
The legal landscape for DFS and sweepstakes in California has been murky, with both types of platforms operating in what many consider a legal grey zone. This session delved into California Attorney General Rob Bonta’s recent opinion, which declared DFS illegal under state law. Bonta’s opinion has brought attention to the issue, particularly as state regulators and tribal governments push for stricter controls.
Tribes in California have long held exclusive rights to operate certain forms of gambling. However, with the rise of DFS platforms and sweepstakes casinos, they argue that these operators are encroaching on their legal turf. The tribes are calling for immediate enforcement actions from Bonta and urging California lawmakers to pass Assembly Bill 831, a proposal designed to clamp down on these online gaming sites.
The webinar’s panel included IGA Conference Chair Victor Rocha and IGA CEO Brian Giles, alongside tribal attorney Scott Crowell and gaming attorney Joe Webster, managing partner at Hobbs, Straus, Dean & Walker. The discussion explored how the unchecked growth of DFS and sweepstakes operators has created a growing concern among tribes.
The Fight Against Sweepstakes Operators
One of the key points of contention discussed during the webinar was the sweepstakes operators’ claim that they are not involved in illegal gaming. Scott Crowell, a tribal attorney, argued that the activities carried out by these operators are equivalent to what tribes do on their own social media platforms. However, the legal opinion from California’s Attorney General undermines this argument, especially as online gambling remains illegal in the state.
Joe Webster, a tribal gaming attorney, painted a grim picture for the future of tribal gaming, warning that these sweepstakes sites are beginning to dominate state-by-state legislation. As these operators grow their influence, they have the potential to erode the exclusivity tribes have historically enjoyed when it comes to gaming. “An avalanche is already happening against these (operators),” Webster said. “What you’re seeing is not just legal opinions, but state-by-state enforcement actions, lawsuits, and a range of gaming that was meant to be exclusive to tribal operations.”
Tribal leaders argue that this continued operation of unregulated sweepstakes and DFS sites is unfairly exploiting the lack of regulatory enforcement, making it harder for legal gambling operations—namely those run by tribes—to compete.
Social Media Campaigns and Resistance to the Bill
As the California government takes action, sweepstakes operators have launched vocal campaigns to defend their right to operate. These campaigns are heavily focused on the claim that the state’s move is unjust, citing concerns about how the legislation might affect their businesses. However, tribal leaders, like Victor Rocha, believe that these operators are only fighting back because California represents a critical market.
“I predicted this 10 months ago,” Rocha said during the webinar. “They would keep pushing until they hit California, and now they are making their final stand here. After California, they’re not going to have much oxygen left. Texas is right behind us.”
The Urgency for Action: Enforcement vs. Industry Resistance
The lack of enforcement by California has been a sticking point for many involved in the debate. According to Rocha, while these operators are pushing hard in California, they have yet to face significant legal consequences. With the state’s large market and the fact that online wagering is illegal, these unregulated platforms are stepping in to fill the gap. Rocha explained that, despite being clearly illegal, there has been little challenge to these operators, allowing them to proliferate without much competition.
“We all think it’s illegal,” Rocha stated. “But without enforcement, there’s not much to stop them. The market is flooded, and nobody is holding them accountable.”
Tribal leaders are also concerned that this situation has become a nationwide issue. With the growing influence of unregulated platforms, the tribes fear that their exclusivity in gaming will be undermined, and their economic interests will suffer as a result.
A Changing Landscape for Tribal Gaming
The session at the IGA webinar revealed much about how California is navigating these legal challenges. But more importantly, it highlighted the resolve of the tribes to ensure their gaming interests remain protected. As the discussion unfolds, it’s clear that tribes across the nation are closely monitoring California’s efforts and how they might influence future legislation in other states.
While the outcome remains uncertain, the stakes couldn’t be higher for both tribal governments and sweepstakes operators. In a world where online gambling is quickly expanding, the battle for control is intensifying—and California may be the next pivotal battleground.
