California Tribes Dismiss Rumors of DraftKings-FanDuel Deal

Tired of rumors claiming tribes and sportsbooks struck a groundbreaking California deal? Leading tribal alliances have stepped forward, calling these claims “simply false.” The mistrust runs deeper than ever. You need clarity on where California’s largest gambling stakeholders stand. Can tribes and commercial operators ever align? Read on to learn why tribal leaders push for full autonomy and how a new proposal might shake up America’s biggest untapped betting market.

Tribal Leaders Disavow Alleged Deal with DraftKings and FanDuel, Signaling Deep Rifts in California Sports Betting

3 Key Points

1. Tribal leaders insist no firm deal exists with DraftKings or FanDuel despite reports to the contrary.
2. Tensions persist after a costly 2022 ballot fight, leaving tribes wary of sportsbook influence.
3. Any new approach faces legal hurdles under IGRA and likely won’t reach voters before 2026 or 2028.

California’s two most influential tribal gaming coalitions have refuted reports of a breakthrough with major commercial sportsbook operators. The California Nations Indian Gaming Association (CNIGA) and the Tribal Alliance of Sovereign Indian Nations (TASIN) released a joint statement on Thursday. They labeled any talk of a finalized deal with DraftKings and FanDuel as “simply false.”

This public denial arrives soon after a gathering at the Indian Gaming Association’s annual tradeshow in San Diego. During a closed-door session, IGA Chairman Victor Rocha hosted discussions with DraftKings CEO Jason Robins and FanDuel President Christian Genetski. The parties allegedly reviewed a draft plan to permit online sports wagering exclusively under tribal control.

The proposed model calls for tribes to unite under one statewide license-holding entity. Commercial sportsbooks would then buy access via revenue-sharing agreements. Although the notion marks a more concrete conversation than anything seen in recent years, tribal leaders say it’s still in the early stages. No agreements were signed or even formally proposed.

For many, the memory of 2022’s two dueling sports betting initiatives remains fresh. Tribes championed Proposition 26, while DraftKings and other operators funded Proposition 27. Both measures met with voters’ overwhelming rejection, and the subsequent fallout cost around $400 million in campaigning. That bruising fight underscored the cavernous divide between tribes and commercial gambling operators.

Jeff Grubbe, former chairman of the Agua Caliente Band of Cahuilla Indians, insists no new accord is at hand. He emphasizes that tribes must shape and dictate the terms of any sports betting plan. Protecting brick-and-mortar facilities remains paramount. “This process will be tribally driven,” Grubbe said, “and grounded in the protection of existing operations.”

One sticking point is the legal framework. Any new sports wagering system must mesh with both California’s state constitution and the federal Indian Gaming Regulatory Act (IGRA). CNIGA Chairman James Siva pressed the Sports Betting Alliance (SBA) on whether this draft plan would comply with IGRA. DraftKings Senior Vice President Jeremy Elbaum admitted that nuances in IGRA could disrupt any such arrangement.

Despite these challenges, some tribal leaders see progress. They welcome constructive dialogue, but only on tribal terms. Wilton Rancheria Chairman Jesus Tarango emphasized that any conversation must move at the tribe’s chosen speed. “It’s going to be at our pace,” he said, though he remained open to exploring specifics.

Persistent mistrust surfaced again when tribes discovered a reporter attending what was billed as a confidential session. The tribal groups blasted the SBA for this perceived breach of trust, reaffirming that direct conversations should occur between tribal governments and not through “operator-funded groups.”

Looking ahead, the question of a fresh ballot initiative looms. Some believe 2026 could be a viable target, while others consider 2028 more realistic. Tribal leaders mention both voter fatigue and legal intricacies as reasons to wait. Sizing up the industry’s potential, DraftKings and FanDuel see California as a massive untapped market. Nonetheless, the tribes are in no rush.

According to CNIGA and TASIN, any workable sports betting model demands thorough debate. They caution that bridging state, federal, and tribal laws will be complex. Coupled with residual distrust from the last ballot showdown, the path forward is anything but guaranteed. Until then, speculation of a rumored compromise between tribes and commercial operators remains premature at best.

California’s tribal coalitions say no agreement exists with DraftKings or FanDuel, underscoring lingering tensions from 2022’s bitter campaign. While a new sports betting proposal appears to float tribal-led regulation and revenue sharing, major legal and political hurdles remain. As tribes assert their autonomy, the timeline for any revival of sports wagering in the Golden State looks to stretch beyond 2026—and possibly well into 2028.