In an interesting development, it appears that a recent Supreme Court ruling regarding gaming may or may not, have an impact on California’s gaming situation in the near future. Per a recent article, in late June, the U.S. Supreme Court declined to hear an appeal challenging Florida’s decision that essentially allows for the Seminole Tribe to maintain a monopoly on online sports wagering activities in the state. That sparked speculation that other states, including California, could bypass voters and establish internet sports betting.
In this report, SBS will be covering the latest gaming news coming from the state of California along with some additional notes and information regarding state gaming updates.
Per the same report, while some tribal gaming leaders in California viewed the Supreme Court decision as a positive, they don’t view it as a playbook for bringing online sports betting to their state. That outlooks also runs counter to the thesis recently laid out by Deutsche Bank analyst Carlo Santarelli, who wrote that the Supreme Court ruling “provides a blueprint for California and other states with tribal gaming.” Gaming tribes in California support the ruling, but that doesn’t mean they’re rushing into sports betting. James Siva, chairman of the California Nations Indian Gaming Association (CNIGA), speaking on the Indian Gaming Association’s (IGA) “New Normal” podcast on Thursday said the only certainty at this point is that tribes won’t be pushing for sports betting in California this year.
“I know there’s a lot of excitement over this decision and it was the right decision, but people think we’re going to start having a push for a new initiative immediately (in California),” Siva said. “Luckily, we have a CNIGA meeting coming up this week and everyone realizes we’ll continue on the path we’ve been taking the last few years, moving carefully and methodically. This opens up some new avenues for us, but our timeline remains the same even with this decision.” The podcast is hosted by IGA Chairman Victor Rocha who is a member of the Pechanga Band of Luiseno Indians, which runs the Pechanga Casino Resort in Temecula, Calif.
As noted in the same article, after backing an ill-fated 2022 ballot proposal to bring online sports betting to California without consulting tribes, commercial sportsbook operators are licking their wounds in the state and things may not get better from here. Per the report, owing to the fact online sports betting in California would be a new form of wagering under the terms of the Indian Gaming Regulatory Act (IGRA), at least 60% of the related revenue must flow to tribal governments. A potential revenue split along those lines could be unattractive to companies such as DraftKings, FanDuel, and the like, but Siva made clear California tribes won’t accept sports betting “crumbs on the table.”
Likewise, Scott Crowell, a tribal-gaming attorney with the Crowell Law Office Tribal Advocacy Group, said on the podcast that the Supreme Court’s decision to not hear the West Flagler appeals signals a variety of things. In this case, he says it signals that the exploitative model commercial gaming companies have used in some tribal-heavy states such as Arizona won’t fly in California.
“If they think they can continue with the unconscionable model they’ve been pursuing for so long in other jurisdictions, I hope this decision is a wake-up call. That’s not going to happen,” Crowell told one outlet.
Rocha also added in the report that under a hypothetical scenario in California, tribes would gain exclusivity over iGaming, and commercial companies could potentially work with tribes on sports betting while being subject to a graduated tax rate that could run as high as 45%. Per sources, that would be the second-highest sports wagering levy in the country behind only New York and several small states.
Noted in one report, a takeaway from the podcast is that California tribal casino leaders want the state’s voters to have a say on the matter of sports, but exactly when that happens has not been decided. The only clarity on timing is that it won’t be this year, according to Siva. Tribes have monitored the situation and realize that after California voters dealt with sports betting ballot initiatives in 2022, the appetite isn’t there for the issue to be reckoned with this year. However, it is possible the matter could be pushed out to 2028 or 2030 and California tribes are comfortable playing the waiting game.
After you are all dialed in regarding the latest gaming updates coming from the Golden State, make sure to of course tap into the wide array of information for you at SBS. In this case, for even more information on the topic covered here, make sure to peruse the California sports betting guide which goes over the latest gaming news coming from the state. On a separate note, if you are interested in diversifying your payment options, you can peruse our payment methods rundown. On this page, you can find all kinds of options from cryptocurrencies to more traditional deposit and withdrawal methods. Finally, for those on the go, a fantastic resource to always be mindful of is the best betting apps breakdown which goes over the perks of mobile betting and the nuances of it.