The Sports Betting Alliance, which represents FanDuel, DraftKings, Fanatics Sportsbook, and BetMGM, is in step with California tribal leadership and its campaign to stamp out unregulated gaming in California, per a recent article. Jeremy Judon, president of the Sports Betting Alliance, late last month joined Victor Rocha, conference chairman of the Indian Gaming Association, and Jason Giles, executive director of the Indian Gaming Association to comment on these efforts. This occurred on The New Normal podcast to discuss the proliferation of sweepstakes gaming in California and the presence of DFS 2.0. “The regulated operators, the tribal sovereign nations, let’s root out unregulated gaming. It’s like a pandemic right now.” Kudon said.
For this article, SBS will be going over what to look for from the latest gaming news coming from the Golden State along with some additional thoughts and notes regarding California gaming.
Noted in the same article, sweepstakes gaming offers free-to-play options but also offers the potential to purchase “sweepstakes coins” or types of “virtual cash” to use as real-money play options to skirt the law and gaming regulations. Kudon said it is incredibly frustrating to work for months, or years, on a gaming bill, see its passage, and then have the sweepstakes companies come into a state to offer their brand of unregulated gaming with no barrier to entrance or requirements for licensing.
The article then raises the question: “Why would the Sports Betting Alliance sit back and allow the presence of this type of gaming in a state when legal operators, such as DraftKings or FanDuel, pay millions in licensing fees, pay high tax rates on their revenues, and are required to abide by a long list of regulations and compliances?” Kudon would note in the report, “It’s a huge point of frustration.”
In California, more than $500 million was spent on either side of the defeated sports betting ballot initiative. The tribes and operators went through a lot of pain, hardship, and frustration, but now seem to be on the same page about allowing tribes to lead gaming efforts in California. “We’re all going to work together to do the right thing, but then you have these companies come right in and say it’s just a sweepstakes. The lost revenue alone, and how important that revenue is to your tribes, is frustrating and infuriating,” Kudon said.
Also noted in the report, Kudon pointed to Fliff, which brands itself as a “social sportsbook” and acts in the same way as a sweepstakes company. It offers free-to-play games for its users, but also a real-cash option that is tantamount to unregulated sports betting. Fliff is rampant across the U.S. throughout college campuses, Kudon said. These games are “hiding in plain sight” in many states, he described. State Attorney Generals typically have more important issues to worry about, but if brought to light they will be more likely to bring action.
Per the same report, the participants also discussed DFS in the state, with the conversation becoming slightly murky as to what is acceptable in California and what is not. California’s DFS market is gray, where operators offer DFS games despite the state not regulating or taxing them. Kudon brought up DFS 2.0, especially where the user plays against the house, and described the offerings as nothing more than parlay prop bets, which need to be licensed and regulated as such. He criticized the current PrizePicks and Underdog Fantasy’s peer-vs.-house pick ‘em contests in the state, which he described in the report as nothing more than an unlicensed sportsbook offering sports bets to its customers.
However, he did say that peer-to-peer DFS 2.0 contests are more aligned with skill-based games and not to be considered sports betting. DraftKings, an SBA member, currently offers Pick 6 contests in California. The Pick 6 game is similar to what PrizePicks and Underdog Fantasy offers but is peer-to-peer-based instead of against the house. Kudon told one outlet he would be amenable to the presence of Underdog Fantasy and PrizePicks in California if they only offered their peer-to-peer contests. Both companies have games that are peer-to-peer, but neither offer them in California. Also during another episode, James Siva, chairman of the California Nations Indian Gaming Association, said it was his opinion that DFS is illegal in every form in the state. “The fact is, according to the California constitution, DFS is illegal in every way,” he said.
After you are all dialed in relation to the latest gaming news and updates coming from the world of California gaming updates, make sure to peruse the excellent array of information over at SBS. Of course, for even more info on the topic covered here, make sure to check out the California sports betting guide which goes over all of the latest gaming updates from the state and how you can stay on top of the action and news. Conversely, for those interested in some higher-stakes wagering, look no further than the VIP sports betting sites rundown which goes over some great information like the perks of VIP wagering and if it might make sense for you if eligible. Finally, for those intrigued by diversifying their payment options, look no further than the payment methods rundown which goes over a variety of options there.
About the Author
As a devout aficionado of sports, Chris Boline has carved a career within the athletic realm. A skilled scribe, he boasts a decade-long portfolio that encompasses coverage of the NBA G League, the Los Angeles Chargers, football and basketball across the country. Beyond his professional pursuits, Chris is deeply invested in his community and dedicates his leisure hours to serving on boards, collaborating with community organizations, and cherishing the company of loved ones. CURRENTLY Business Development and freelance sports writing RESIDES IN Reno, NV EDUCATION University of Nevada BS and MBA EXPERTISE -Sports writing proficiency in: NFL, NBA, UFC, boxing, golf, and some motor sports -Topical news -Promotional and marketing ideas/updates -Business development Summary Chris Boline serves in a business development sales capacity as his day job. He has previously held sales/marketing positions with The Applied Companies (TAC), KTVN 2 News and the NBA G League’s Reno Bighorns, affiliate of the Sacramento Kings. He is a Reno native and is a member of various community boards including the Nevada Sagebrush Alumni Chapter, NCET and the College of Business Alumni Association (COBAA). Chris graduated from the University of Nevada in 2015 with a bachelors in management and economics and also earned his MBA from Nevada in 2023. More about Chris: Past president of the College of Business Alumni Association (COBAA) 2022-23 Two-time honoree for University of Nevada Alumni Chapter of the Year (Nevada Sagebrush Alumni Chapter, 2017 & COBAA, 2021) 2021 NCET award for Professional Services Organization of the Year with TAC Northern Nevada Human Resources Association 2020 Best Places to Work-Northern Nevada, Second Place with TAC 2016-17 Reno Bighorns MVP from the Sacramento Kings The Nevada Sagebrush editor-in-chief 2013-15 Associated Collegiate Press 2015 Four-year Non-daily Newspaper Pacemaker honoree University of Nevada, Reno College of Business Dean's List honoree (5x) from 2011-2015 Nevada Press Association award for Best Sports Column – Community in 2015 Education
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