California Sports Betting: Is a Tribal Partnership the Key to Legalization?

• DraftKings and FanDuel executives met with tribal representatives in California at the Indian Gaming Tradeshow & Convention to discuss a potential partnership.
• The Sports Betting Alliance’s proposal seeks to license sportsbooks while ensuring revenue-sharing benefits for all 109 federally recognized tribes.
• Despite ongoing negotiations, tribal consensus remains a major obstacle, and any potential legalization wouldn’t happen before 2027.

SAN DIEGO – Recent developments suggest that the California sports betting landscape could be shifting, with major sports betting operators and tribal leaders seeking common ground.

At the Indian Gaming Tradeshow & Convention in San Diego, industry leaders, including DraftKings CEO Jason Robins and FanDuel President Christian Genetski, sat down with tribal representatives to discuss the potential for a sports betting partnership.

The panel, titled “The Power of Partnerships: Aligning with Established Gaming Brands,” focused on how legal sportsbooks can collaborate with tribes rather than compete against them—a stark contrast to the adversarial battle seen in 2022.

Robins acknowledged that any future attempt to legalize sports betting in California must be led by the tribes, recognizing the political and economic power tribal entities hold over the state’s gaming industry.

The Sports Betting Alliance’s Proposal

The Sports Betting Alliance (SBA)—comprising DraftKings, FanDuel, BetMGM, and Fanatics—is working on a new initiative to legalize online sports betting in California. Their plan includes licensing at least four sportsbook operators, with revenue-sharing agreements benefiting all 109 federally recognized tribes in the state.

While some tribal leaders remain skeptical, others see an opportunity. The SBA’s proposal ensures a minimum guaranteed payment to the tribes, potentially creating a unified “uber-tribe” structure to oversee sports betting revenue distribution. However, this framework would exclude other major sportsbooks like Caesars, ESPN BET, and Bet365, which could create further division within the industry.

While discussions are ongoing, any new ballot measure would not reach voters until 2026, with a potential launch in 2027 at the earliest.

Still, tribal consensus remains the biggest hurdle. Victor Rocha, chairman of the Indian Gaming Association’s conference, responded to the SBA’s latest proposal by calling it “DOA” (dead on arrival) based on early tribal feedback.

Sports betting giants have spent the past two years repairing relationships with tribal leaders with an estimated $3 billion annual market at stake. This includes hiring former tribal executives, sponsoring industry events, and emphasizing long-term partnerships over short-term gains.

The next two years will be crucial in determining whether California joins the growing list of states with legal sports betting. Until then, offshore sportsbooks will continue to capture billions in wagers from California residents.

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