Plenty of opposition

Sportsbook operators and California tribes are both on the same page in opposing controversial sports betting initiatives in the state. Gaming industry veteran Kasey Thompson and blockchain entrepreneur Reeve Collins presented an unorthodox plan last year to legalize the activity in the Sunshine State.

hope to gather 874,641 valid signatures

They proposed giving exclusivity to tribes for retail and online sports betting, with 25% of profits going toward non-gaming tribes. The pair also suggested transferring the assets of illegal offshore sites to tribes. Thompson and Collins hope to gather 874,641 valid signatures from the public by April 23 to get the initiatives on November’s ballot, something that they estimate will cost about $25m to do.

Many of the state’s sovereign nations quickly made it known that they oppose this approach and they have now been joined by sportsbook operators. Sports Betting Alliance members confirmed on Tuesday that they are against the idea.

Breaking down the reasons

A spokesperson for the alliance emphasized that the organization would not “be funding or otherwise supporting” the sports betting initiatives. He went on to outline the reasons why the group opposes the proposal. The plan does not have support from tribes, so the alliance believes that it has no chance of success and could set back legalization efforts.

It also believes the initiatives would not lead to stakeholders tapping into the full potential of a legal betting market in the country’s most populated state and would allow illegal operators to keep making money. Finally, the plan breaches the regulatory standards that the alliance’s members uphold as the proposals would lead to the development of a business based on illegal offshore operations.

A messy affair

Sports betting legalization in California has been a hot topic since the ending of the federal ban in May 2018 and expansion efforts so far have been unsuccessful. One of the campaigns that gained the most momentum was Proposition 27, led by FanDuel and DraftKings.

Gaming tribes in California vehemently opposed the idea, spending about $180m to push back against it. The public ultimately overwhelmingly rejected the referendum, with 83% casting ballots against it in November 2022. Efforts by tribes to push through their own bill also proved unsuccessful.

skeptical about Thompson’s and Collins’ motives

While the two groups were at loggerheads over Proposition 27, they are now working together to oppose the proposal from Collins and Thompson. Tribes are skeptical about Thompson’s and Collins’ motives and feel like they are being strongarmed into going along with the idea.