Tribal opposition results in failure of California’s sports betting proposals

California’s sports betting ballot proposals have met an unexpected end, with both tribal and commercial operators voicing their opposition. This decision by Eagle1 Corp, the driving force behind the initiative, signifies the conclusion of an unusual saga where tribal interests rallied against measures seemingly intended for their benefit. Consequently, the possibility of legalized sports betting in America’s most populous state has been put on hold for the time being.

Abandoning sports betting proposals

Observers found it ironic that both the largest tribal association and operator association united in opposition to the proposals. This followed a contentious attempt to legalize betting via ballot measure in 2022, where operators and tribes proposed competing measures that both failed. The decision to abandon the initiative came shortly after California’s attorney general approved the two ballot measures to start gathering signatures, an endeavour that would have cost millions of dollars.

Eagle1 Corp spokesperson, Kasey Thompson, cited tribal opposition as the primary reason for the group’s decision to abandon the measures. He expressed regret over the division caused by the initiative, which was initially intended to benefit the tribes.

Tribal opposition and the future of sports betting

Despite efforts to revise the proposals, the California Nations Indian Gaming Association (CNIGA) reiterated its opposition to the measures in December, labelling them as “disingenuous”. However, not all tribes were against the proposals. Four smaller, more rural tribes, all members of the Revenue Sharing Trust Fund (RSTF) for non-gaming tribes, supported the amended measures due to the proposed 25 percent allocation to the RSTF, highlighting the importance of this revenue stream in combating poverty.

Nevertheless, the majority of the state’s tribes were broadly opposed. Eagle1 leaders Kasey Thompson and Reeve Collins, co-founders of Pala Interactive, had hoped that the Pala Band of Mission Indians would spearhead tribal support. However, this hope was dashed after conversations between Pala chairman Robert Smith and tribal gaming leaders at the Las Vegas trade show G2E.

The tribes were reportedly more opposed to pursuing the issue at all in 2024 than they were outraged by the proposals themselves. The tribes had decided not to pursue an Off-Site Betting (OSB) push in 2024 due to unfavourable polling and the dramatic failure of the 2022 campaign. Thompson’s final attempt to salvage the measures involved offering $25m to a tribal gaming group and promising to step back and hand over control of the initiative to the tribes.

After being turned down, Thompson expressed that he would have involved the tribes much earlier if he had the opportunity to start over.

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