For those following recent California gaming updates, a new “partnership” might surprise some regular readers. Per a new report, two years after California voters rejected online sports betting, following an epic and costly ballot box fight, the major forces at odds over the issue – California’s tribes and online sports betting companies suddenly found themselves united against a common enemy. That being so-called “gray market ‘sweepstakes’ gambling sites” that both camps say are cutting into their profits and undermining legal gaming operations here and across the country. The national companies noted in the report are outfits like DraftKings and FanDuel and have now found themselves voicing uniting messages about getting rid of these contests.
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 more notes and resources coming from the area.
Covered in the same article, Jeremy Kudon, president of the Sports Betting Alliance, which represents DraftKings, FanDuel BetMGM, and Fanatics, recently spoke about the issue on the Tribal Gaming Association’s webcast co-hosted by Victor Rocha. The latter of which, some will recall, is a high-profile and outspoken leader in California’s tribal gaming community. Kudon’s appearance represents just the latest sign that tensions between online gaming operators and California gaming tribes are slowly easing in the wake of the hundreds of millions of dollars spent on 2022’s propositions 26 and 27, which both failed to pass. Additionally, beginning last year, FanDuel made a series of hires strongly suggesting, the article points out, it now wants to work with California’s gaming tribes, not against them.
More specifically, in October 2023, FanDuel hired San Manuel Band of Mission Indians Chief Operating Officer Rikki Tanenbaum as a senior vice president of strategic partnerships. In January, it also hired Frank Sizmore, a former San Manuel vice president of operations, as a vice president of strategic partnerships. Moreover, in February, the company also convinced E. Sequoyah Simermeyer, the chairman of the federal National Indian Gaming Commission, to resign his office to also (you guessed it) take a job as a vice president for strategic partnerships with the company. Then in April, a “humbled” the article says, Amy Howe, the CEO of FanDuel, appeared at the Indian Gaming Tradeshow and Convention in Anaheim, where she admitted the 2022 initiative battle was a “spectacular failure” and that her side “learned a lot.”
Still, the report notes, relations remain so frosty between online sports betting companies and California gaming tribes that Rocha told Kudon on the webcast, “I think a lot of people were shocked when I announced you were going to be our guest this week. I think a lot of people thought after California 26 and 27 that there would be no way that the East and West shall (sic) meet. But here we are, aren’t we?” Rocha, Kudon, and webcast co-host Jason Giles, executive director of the Indian Gaming Association, spoke for nearly an hour about the scourge of sweepstakes gaming sites like High 5 Casino and Fliff.
These outlets, according to them, are unlawfully offering sports betting and iGaming to gamblers across the country by marketing their sites as “social” operations – that is, just for fun – but then selling user bonus “sweepstakes” coins that they can wager and exchange for real money. “It’s more prevalent than any of us fully appreciated,” Kudon said on the webcast. “I think it’s supposed to be right now $2 billion in revenue for these sweepstakes sites. And they are predicted to get up to $4 billion by the end of 2025. That’s a lot of money. That’s money that could be going to the states and that’s money that could be going to the tribes.”
Rocha, Kudon, and Giles all complained that these sweepstakes sites are operating out in the open, but are unregulated and untaxed. Therefore, the article points out, unfairly competing with lawful, licensed operations that pay fees and taxes to the government. “It would be like a speakeasy,” Kudon said. “You go into what looks like a soda shop and then like all of a sudden I like flip this and it becomes an actual bar.” The trio expressed hope that attorney generals across the country would start cracking down on these unlicensed operators, and that could develop in the weeks and months ahead. However, the biggest news out fo the webcast arguably was the online sports betting community’s public display of once again “kissing the California gaming tribes; metaphorical ring after they so soundly defeated in 2022.”
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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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