California Tribes Deny Deal with Betting Operators

No Agreement in Sight

The California Nations Indian Gaming Association (CNIGA) and Tribal Alliance of Sovereign Indian Nations (TASIN) dropped a joint statement, calling claims of a finalized agreement with the Sports Betting Alliance (SBA), a group backed by DraftKings and FanDuel, “simply false.”

Tribal leaders stressed no handshake’s been made, and they’re not happy with how things are playing out.

The blow-up stems from a private roundtable that went public. Tribes are “offended” the SBA invited a reporter to what was supposed to be a closed-door chat, branding it a “breach of trust.”

They’re digging in, insisting any talks or decisions roll at their pace, driven by tribal governments, not operator-funded outfits.

Jeff Grubbe, ex-chair of the Agua Caliente Band of Cahuilla Indians, said the process will be “tribal-led” and focused on guarding their brick-and-mortar casino turf. Victor Rocha of the Pechanga Band of Luiseño Indians went harder, claiming the SBA’s plan is already “dead on arrival” after polling tribal brass.

Long Road, Big Stakes

 Tribes warn that hashing out a framework, balancing federal, state, and tribal law, takes time and serious debate. They’re not rushing into anything that could dent their sovereignty or the revenue-sharing compacts giving them sports betting exclusivity.

California’s $1.6 billion tribal gaming haul in 2024’s no small change, and any online shift needs to fit their playbook. The SBA’s pitch, whatever it was, isn’t cutting it, Rocha’s “DOA” tag signals a steep climb ahead.

Meanwhile, a shared worry’s bubbling up: prediction markets. Tribes, states, and operators like DraftKings see platforms like Kalshi and Crypto.com as a growing headache.

These federally regulated markets, overseen by the Commodity Futures Trading Commission (CFTC), offer sports event contracts nationwide, $323 million traded on March Madness alone, sidestepping state betting laws.

CNIGA’s fired off a letter to the CFTC, demanding clarity that these contracts don’t belong, arguing they undercut tribal and state rights to call the shots on gambling.

Prediction Market Pressure

The concern’s legit. Nevada and New Jersey already slapped Kalshi with cease-and-desist letters, sparking lawsuits, while Ohio and Illinois followed suit this week.

California’s tribes aren’t alone, operators fret too. DraftKings’ Jeremy Elbaum told outlets their Predict product won’t touch California, hinting at the same unease.

Tribes want control, not chaos, and see prediction markets as a sneak attack on their exclusive gaming deals. Any legalization push, online or retail, has to thread a needle through complex rules, and they’re not letting operators steer the ship. Grubbe’s “long road” comment shows it: this will be a marathon, not a sprint.