The Sports Betting Alliance (SBA) revealed a plan that could see California online sports betting become a reality in the future.
The plan focuses on creating a single tribal entity in California that would contract with national operators to bring sports betting to California residents. It is a bold idea, considering there are 109 tribes in the most populous state in the US.
Representatives from DraftKings and FanDuel put forward the proposal in an hour long meeting at the Indian Gaming Tradeshow and Convention on Tuesday. Jeremy Elbaum represented DraftKings and Frank Sizemore spoke on behalf of FanDuel. The pair made a proposal that would see SBA members compete against each other while sharing revenues with all tribes.
This may see a limited number of sites becoming licensed and those that operate outside the state may stay unavailable to California bettors. This would include platforms such as Hard Rock Bet, ESPN Bet, Prime Sportsbook, and Sporttrade.
In this scenario, Californians may still opt for alternative methods such as crypto sports betting in order to get a better product.
Hurdles to legalizing California online sports betting
California National Indian Gaming Association Chairman James Siva voiced concerns about the plan. Siva, who acted as spokesperson for the tribes, warned the FanDuel and DraftKings representatives about opening online casinos in addition to online sports betting. Siva questioned Elbaum of DraftKings,
Siva: “If this was to go online at what point do you all move on to online casino? Would there be language saying you won’t go into online casinos? If you go to online casinos, you compete with all of us.”
Elbaum: “We’re not here for that. We’re open to the language. This is not for online gaming, it’s for online sports betting.”
Siva also expressed concern about prediction markets. Kalshi, Robinhood, and Crypto.com have experienced backlash from states as they increase the range of sports event contracts.
Siva: “So if we don’t come to the table or can’t come to an agreement, are you going to bring (prediction markets) into California? I’ve seen DraftKings futures already and I am sure that FanDuel has some coming, too.”
Elbaum: “No, that might fit somewhere else, but not here.”
The line of questioning suggested Siva and the California tribes are yet to be convinced but were willing to listen to the proposal.
California online sports betting and casinos
At the moment, online sports betting and gaming remain illegal in California. Prediction markets and sweepstakes casinos, however, continue to operate.
This week, a California resident challenged the legality of sweepstakes casino operators. A growing number of states have also challenged prediction markets, comparing sites like Kalshi to online sports betting.
California may yet join the other states. But, with legalized sports betting and casinos still far away, users will continue to turn to alternatives. The meeting on Tuesday at least gave those in favor of California online sports betting a glimmer of hope.
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