In an intriguing turn of events, California tribes have launched two new ballot initiatives aimed at securing exclusive rights to sports betting in the state. These initiatives, if successful, would grant tribal entities the sole authority to offer sports betting, both at physical locations and online. The proposals are raising eyebrows due to the rejection of similar sports betting measures by California voters in November 2022. With the November 2024 election on the horizon, California is gearing up for another debate on the contentious issue of sports betting.
Reeve Collins, CEO of Pala Interactive, serves as the contact for media inquiries related to both initiatives. Pala Interactive, co-founded by the Pala Band of Mission Indians in 2013, grabbed headlines when it was acquired by Boyd Gaming in November 2022.
The Initiatives and Their Implications
The first initiative, titled “The Sports Wagering Regulation and Tribal Gaming Protection Act,” outlines how sports betting would operate under tribal governance in California. It proposes amendments to Article IV, section 19 of the California constitution. It requires tribes to allocate 15% of their adjusted sports wagering gross gaming revenue (GGR) to a tribal sports wagering revenue-sharing trust fund. Additionally, tribes would contribute 10% of their adjusted sports wagering GGR to the California homelessness and mental health fund. The initiative also emphasizes that all sports betting advertising must exclusively target individuals aged 21 and over.
Tribes interested in participating must collaborate with licensed sports betting operators vetted by the Tribal Gaming Agency and approved by the California gaming agency.
The second initiative, “The Tribal Gaming Protection Act,” underscores the exclusive nature of sports betting, effectively granting tribal entities a monopoly over this segment.
These initiatives have not been without controversy. Victor Rocha, the conference chair at the Indian Gaming Association, criticized Pala Interactive’s alleged attempts to prevent tribal leaders in California from speaking to the media before consulting with them. In response, David Strow, Vice President of Corporate Communications for Boyd Gaming Group, clarified that Pala Interactive (now known as Boyd Interactive) was not involved in initiating these proposals.
Criticisms and Challenges
The California Nations Indian Gaming Association (CNIGA) also expressed disapproval, emphasizing that it was not consulted on these initiatives. They believe that decisions regarding the future of tribal gaming should be made by tribal governments rather than imposed upon them.
The fate of these initiatives remains uncertain, especially without the support of major tribal operators in California, including Agua Caliente, Morongo, and San Manuel, who are crucial stakeholders in the sports betting landscape.
Pala Interactive faces the challenge of gathering the necessary signatures for the ballot through a random sample method, requiring a minimum of 500 signatures to be verified by election officials in their office. This places the deadline for signature collection in late April 2024, leaving little room for error.
The prevailing sentiment in the sports betting industry suggests that, among mid-sized or large states, only Georgia is likely to approve sports betting during the 2024 election cycle. California’s journey toward legal sports betting remains a complex and evolving narrative, and the upcoming election will be a pivotal chapter in this ongoing story.
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