California’s tribal leaders are doubling down on their fight against sweepstakes operators, as fresh allegations emerge that the controversial industry is trying to pit tribes against one another over a key piece of legislation.
California Assembly Bill 831 has become a lightning rod in Indian Country. The proposed law seeks to dismantle the sweepstakes industry and hold accountable everyone tied to it—from operators and payment processors to high-profile celebrity endorsers.
The Indian Gaming Association (IGA) hosted a webinar last week to unpack the bill. Victor Rocha, the organisation’s conference chairman, described the current landscape as a battle over integrity and exclusivity. He warned that sweepstakes, daily fantasy sports, and prediction markets are shifting into sports-betting-like territory, raising urgent questions for tribes that hold compacts guaranteeing exclusivity in gaming.
“AB 831 is going to pass, and what sweepstakes operators are doing to divide tribes shows a lack of imagination,” Rocha said, bluntly addressing what he sees as a deliberate effort to fracture tribal unity.
Allegations of Division Among Tribes
One of the most striking revelations from the webinar was the claim that sweepstakes operators have approached certain tribal leaders to oppose AB 831. Names cited included the Sherwood Valley Band of Pomo Indians, Big Lagoon Rancheria, and Kletsel Dehe Wintun Nation.
James Siva, chairman of the California Nations Indian Gaming Association, expressed frustration that the industry is seeking to exploit differences within Indian Country. “This isn’t just about one bill. It’s about the long-term future of tribal sovereignty in gaming,” he said.
The industry’s tactic, according to panellists, is to create the perception of division where most tribes are actually aligned. That alignment, however, has been tested before—particularly during heated debates over sports betting initiatives in the 2022 ballot, where tribes spent heavily to protect exclusivity.
And the tactic may work on some. Smaller tribes, often lacking the resources of larger casino operators, can be vulnerable to promises of partnerships or revenue-sharing deals.
A Broader Fight Over Gaming’s Future
Beyond AB 831, the discussion turned to what happens when sweepstakes and daily fantasy sports inevitably collapse. Rocha argued that much of the industry is already pivoting toward “prediction markets” that mirror sports betting in structure if not in legal definition.
That shift could present new headaches for California regulators and tribes alike. The state has yet to legalise sports betting, after voters rejected two high-profile measures in 2022. Yet demand clearly exists, and operators are eager to capture it in whatever legal grey zones remain.
As Dustin Gouker, an analyst with the Closing Line, noted: “Prediction markets are the next frontier, and they raise the same questions about who controls the games, who profits, and who bears the risks.”
His point highlights the delicate balance tribes face. On one hand, they are determined to guard their exclusive rights to gaming under state compacts. On the other, they must reckon with an industry constantly reinventing itself to stay ahead of laws.
Where Money and Influence Collide
Tribal gaming in California is big business. Casinos generate billions annually, funding essential services for tribal communities and contributing significant revenue to the state. Against that backdrop, even the perception of lost exclusivity becomes politically charged.
The sweepstakes industry, while smaller, has tried to leverage aggressive marketing. Some companies enlist influencers or celebrities to attract younger players online. AB 831 directly targets this, placing accountability not just on operators but on those who lend their platforms to promote the games.
That’s where some friction arises. The bill’s reach, critics argue, could sweep up well-meaning partners unaware of the legal pitfalls. But supporters counter that ignorance should not excuse enabling an industry operating outside California’s compact system.
It’s a debate rooted in economics, but also in trust. Can tribes rely on lawmakers to preserve their hard-won rights? And can lawmakers resist industry lobbying that often comes with deep pockets?
The Political Stakes at Play
California politics have long been shaped by gaming. From Proposition 1A in 2000, which gave tribes the right to operate slot machines and house-banked card games, to the failed 2022 sports betting measures, the push and pull between tribes, the state, and outside operators has never truly subsided.
AB 831 is the latest front. Supporters see it as a safeguard against erosion of tribal rights. Opponents warn it could stifle innovation or lock California out of a booming online sector.
For tribes, though, the stakes are existential. As Siva stressed during the webinar: “This is about protecting sovereignty, about making sure our communities have a future that we control—not outsiders who want a slice of the pie.”
What Lies Ahead
How this plays out will depend heavily on political alliances. The bill is advancing in Sacramento, but the sweepstakes industry isn’t backing down. By seeking to rally opposition among some tribes, they are testing the unity that has historically been Indian Country’s greatest strength.
And unity is far from guaranteed. The split during the 2022 sports betting battle showed how money and outside interests can create deep fissures. If sweepstakes operators can replicate that, even partially, AB 831 may face rougher waters.
Still, the momentum appears on the side of those calling for tighter regulation. The broader public, weary of unregulated online gaming schemes, may be more receptive to tribal concerns than to corporate ones.
The coming months will reveal whether AB 831 cements tribal exclusivity in California—or exposes the vulnerabilities in a system tribes have fought decades to build.
