California Sports Betting Competition Spurs Legalization Chatter
California represents the nation’s largest prospective sports betting market, yet the state has made virtually no progress toward legalization since voters decisively rejected two California sports betting measures in 2022.
However, recent surges in the popularity of sweepstakes casinos, sportsbooks and prediction markets like Kalshi have caused discussions to surface between the state’s tribes, which own a monopoly on California gambling, and several of the nation’s most prominent sportsbook operators.
Now, the tribes could find additional incentive in the form of receiving $10 million per tribe annually in addition to any revenue-sharing deals that arise from a legal California sports betting market. Any developments would work toward legalization in 2028, as tribal leaders have already ruled 2026 out of the equation.
Contents
As the tribes go, the state goes
The fact that California’s tribes facilitate all casino gaming in the state only begins to tell the story. They also have a cultural stronghold on the matter, which proves even tougher to crack.
The nation’s premier sportsbooks learned that lesson the hard way after spending nine figures on Prop 27 and failing to defeat the tribes, which deployed nine figures of their own and got 82% of California voters to reject the ballot measure.
Of course, both sides spent another nine figures apiece on Prop 26, which had 67% of California voters say no. Regardless, the tribes were clear when they stated their intent not to allow sports betting unless they were involved.
Now, the tide appears to be turning concerning the tribes’ viewpoints on commercial sportsbooks. Blue Lake Rancheria Tribal Chairman Jason Ramos said at an SBC Americas panel:
“There was a conversation that we weren’t going to talk about sports wagering until ’28 or ’30. Now, with some of the other players that are already illegally operating in the state, I think we need to get together and really have that conversation.”
Ramos also said he’s happy to work with the Sports Betting Alliance, a partnership between BetMGM, DraftKings, Fanatics and FanDuel.
SBA model includes $10 million annually per tribe
The SBA and leaders representing California’s 109 federally recognized tribes engaged in a discussion at the Indian Gaming Tradeshow and Convention in San Diego earlier this year about working together to legalize sports betting in California.
LegalSportsReport received an early framework that resulted from that discussion, which gave the tribes licensing power for online sports betting apps and allowed them to forge partnerships with nationwide sportsbooks.
More importantly, it accounted for smaller tribes, including non-gaming ones. The model includes $10 million annual payments to all 109 tribes.
From foe to friend for SBA?
Where California tribes and commercial sportsbooks previously opposed one another, the SBA now aims to bring all entities together. A sports betting economy with annual revenues projected in the billions does nobody any good if it never materializes.
Conversely, such an economy presents enough pieces of the pie for everybody to get a share.
Both parties bring complementary assets to the table, too. Sportsbooks cannot get into California without cooperating with the tribes, but the tribes need sportsbook operators’ technology to reach the market’s full potential.
Wilton Rancheria Chairman and CEO Jesus Tarango called it “a curse and a blessing” at SBC, adding that the discussions were bringing all parties where they “need to go.” He also highlighted the importance of tribal participation with an equal share and an equal say.
Pechanga Resort Casino president Sean Vasquez added, “Because you don’t have commercial gaming in this space, there needs to be tribal leadership on this initiative,” further stressing the importance of leadership to “uplift” all 109 tribes and protect tribal sovereignty.
