In a remarkable shift from the bitter ballot initiative battles of 2022, major sports betting operators and California's tribal gaming interests are exploring an unprecedented collaboration that could finally bring legal sports wagering to the nation's most populous state.
During the recent Indian Gaming Tradeshow & Convention in San Diego, representatives from the Sports Betting Alliance (SBA) — including DraftKings and FanDuel — unveiled a proposal to create a single tribal entity that would oversee online sports betting throughout California. This entity would contract with national operators while maintaining tribal control over the market.
"I'm not going to sit here and say we don't make mistakes — we've made many mistakes," DraftKings CEO Jason Robins said during a panel discussion. "Having tribal relationships and partnerships is absolutely essential — there's no other way to do it here."
The proposal marks a dramatic reversal from 2022, when operators spent over $200 million pushing Proposition 27, which would have legalized online sports betting without tribal leadership. That measure was overwhelmingly rejected by voters, with more than 80% voting against it.
The SBA's new approach includes several key elements:
Creation of a unified entity representing all 109 federally recognized California tribes
Operators funding a future statewide ballot initiative
Guaranteed minimum annual revenue for each tribe
Revenue-sharing model that benefits both gaming and non-gaming tribes
Sports betting operators bearing financial risks rather than tribes
According to the proposal, operators would compete against each other while contracting with the tribal entity, potentially limiting the market to SBA members DraftKings, FanDuel, Fanatics, and BetMGM.
California National Indian Gaming Association (CNIGA) Chairman James Siva confirmed that tribal leaders have considered a similar model independently, asking SBA representatives whether their plan would operate inside or outside the Indian Gaming Regulatory Act (IGRA).
Despite the promising discussions, tribal leaders emphasize that an agreement is far from finalized. CNIGA released a statement pushing back on reports of a confirmed deal, noting that "establishing an acceptable framework and governance model will take time."
Tribal chairperson Glenda Nelson of the Estom Yumeka Maidu Tribe voiced concerns about revenue distribution, stating: "We as tribes really want to make sure that we have the lion's share. We want to make sure that all of the tribes are taken care of... I really think it's a top goal of California tribes that we all share equally."
Currently, non-gaming tribes receive annual payments of $1.2 million from a trust funded by gaming tribes. The SBA projects this could increase to between $5 million and $10 million under their proposal — potentially life-changing for smaller, rural tribes.
During the discussions, tribal leaders sought specific assurances from the operators:
No expansion into online casino gaming that would compete with tribal brick-and-mortar casinos
Commitment to avoid circumventing tribes through prediction markets if an agreement falls through
Protection of tribal sovereignty throughout any partnership
DraftKings representative Jeremy Elbaum affirmed that the company would not bring prediction markets to California and was open to language explicitly preventing expansion into online casino gaming.
Any framework would require a return to the ballot box for voter approval of a constitutional amendment. Sports betting experts suggest an official announcement could be "months, if not years away" as each tribe must individually approve any agreement.
"You're dealing with 109 governments… and government doesn't move quickly," said John Holden, a professor at Indiana University's Kelley School of Business. "If sports gambling happens, it's going to happen how the tribes want it to happen."
For operators, California represents an unmatched opportunity. As DraftKings' Robins noted: "There's no other state out there that has the ability to impact our long-term growth than California."
While significant hurdles remain, the ongoing dialogue between former adversaries represents a potentially transformative shift in California's sports betting landscape, with both sides acknowledging that any successful path forward must prioritize tribal leadership and sovereignty.