Tribal leaders talk California’s move against DFS and sweepstakes operators
As the California Senate advanced a measure this week to curtail online sweepstakes operators and Attorney General Rob Bonta issued an opinion calling daily fantasy sports (DFS) illegal, tribal leaders and representatives praised their efforts. They also maintained that they now have the upper hand in fighting out-of-state third parties they say are encroaching on tribal sovereignty.
The issue was addressed Wednesday in the latest webinar hosted by the Indian Gaming Association. This session, “Closing the Loopholes in California: Tribal-Led Efforts to Rein in Fantasy Sports and Sweepstakes Sites,” discussed California’s tribal governments drawing what they call “a firm line in the sand,” as unregulated daily fantasy sports and dual-currency sweepstakes casinos continue to operate in legal gray areas.
In the episode, the panel broke down Bonta’s opinion, issued last week, declaring DFS illegal under state law and examined Assembly Bill 831, a proposal backed by tribes to shut down online sweepstakes gambling. Tribes are now demanding immediate enforcement from Bonta and for California lawmakers to pass the bill.
The session featured IGA Conference Chair Victor Rocha and IGA CEO Brian Giles. Guests were tribal attorney Scott Crowell and tribal gaming attorney Joe Webster, managing partner of Hobbs, Straus, Dean & Walker.
Crowell took issue with sweepstake operators and their affiliates, arguing that it’s not illegal gaming and that social media sites operated by the tribes are doing the same thing. The sweepstakes companies have argued more study needs to be done on the California bill and that its passage should not be rushed.
“An avalanche is already happening against these (operators),” Webster said. “You’re seeing state-by-state legislation, AG opinions and enforcement action, and a lot of lawsuits being filed. A whole range of gaming that tribes are supposed to have exclusivity for is being run over by these operators.”
Rocha said what he predicted 10 months ago is coming to fruition, adding he knew the operators would run until they came to California and would make their final stand.
“After California, they’re not going to have much oxygen left,” Rocha said. “I think Texas is coming right behind us, especially when it’s this egregious exploitation.”
Webster said the lack of enforcement by California has enabled these operators to continue, and with such a large market and not a legal competitive product since online wagering is illegal, they can fill the market with their offers. “We all think it’s illegal, but there’s not a lot of challenge and not much competition.”
https://cdcgaming.com/tribal-leaders-talk-californias-move-against-dfs-and-sweepstakes-operators/