California’s tribal leaders are intensifying their efforts to confront the rapid expansion of prediction markets within the state. This week, leaders gathered in San Diego to strategize their legal and political responses aimed at slowing or potentially halting the growth of these platforms. Their discussions follow the recent launch of a prediction market by Fanatics, with industry giants FanDuel and DraftKings expected to enter the California market soon.
Tribal Leaders Unite Against Threats to Gaming Rights
During a national webinar organized by the Indian Gaming Association, leaders voiced significant concerns about the implications of prediction markets. James Siva, chair of the California Nations Indian Gaming Association, articulated the tribes’ perspective, stating that these platforms pose a threat to their long-established gaming rights and challenge the regulatory framework of the state. He announced that California Attorney General Rob Bonta is poised to enhance the state’s involvement in the ongoing legal battle. This effort includes supporting a brief in a Maryland lawsuit against Kalshi and initiating California’s own legal proceedings.
Tribal leaders argue that allowing prediction markets to operate unchecked undermines the exclusive rights guaranteed to them by the Indian Gaming Regulatory Act. Market operators, on the other hand, contend that contracts based on future events should be governed by federal commodities regulations, placing them outside state jurisdiction. This disagreement has ignited a series of legal disputes involving Kalshi, Robinhood, and other companies across the country.
In California, three northern tribes filed a complaint earlier this year aimed at preventing market-style platforms from entering their territories. Although a federal judge allowed operations to proceed during the legal proceedings, tribal leaders noted that the court acknowledged many of their concerns. Siva emphasized that the ruling has not diminished the tribes’ resolve, expressing confidence that Bonta’s office will soon issue a stop order against these platforms.
Exploring New Strategies to Protect Tribal Interests
Panelists at the San Diego meeting discussed the necessity of developing contingency plans in case the courts favor prediction market operators. Siva mentioned that some tribal leaders have begun to contemplate whether they should establish their own prediction platforms to safeguard their financial interests and authority if state regulators fail to intervene. Other members of the panel suggested that if tribes create their own platforms, the heightened visibility could prompt federal regulators to take more decisive action.
Tribal officials highlighted a broader initiative to raise awareness among lawmakers and tribal communities about the potential impacts of prediction markets. Siva’s own tribe, along with the San Manuel Nation, is actively running campaigns to educate stakeholders about the implications of these markets. Across the nation, leaders from the Indian Gaming Association are encouraging tribes to reconsider partnerships with sports leagues that have embraced these prediction platforms.
With over 100 tribes operating gambling enterprises in California, leaders are prioritizing efforts to curb the establishment of betting markets before they become entrenched. As business operators move quickly, the conversation is shifting from whether betting markets should exist to how tribes can effectively protect their interests in this evolving landscape.
