California tribes and the Sports Betting Alliance are putting their past battles behind them as they look to tackle sweepstakes gambling. [Image: Shutterstock.com]

A growing concern

Many in the sports betting industry are sitting up and taking note as California’s gaming tribes join forces with the Sports Betting Alliance (SBA) to tackle sweepstakes casinos.

spread of sweepstakes casinos across the state

Indian Gaming Association’s (IGA) Conference Chairman Victor Rocha and Executive Director Jason Giles hosted a podcast on Wednesday with SBA President Jeremy Kudon as a guest. The topic was the spread of sweepstakes casinos across the state and the grey area of daily fantasy sports:

Putting the past behind them

The SBA is made up of private sportsbook operators like DraftKings, FanDuel, and BetMGM, and advocates for the legalization of sports betting across the country. It took on California tribes over the unsuccessful betting ballot initiative in 2022 that saw the two sides spending nearly $500m in an effort to win over voters.

The American Gaming Association (AGA) has called on regulators to take action against the sweepstakes industry that is reportedly worth $2.5bn, according to an Eilers & Krejcik report.

Speaking on the podcast, Kudon likened the source of unregulated gaming to “a pandemic.” He emphasized how tribes are losing revenue as people use these online platforms instead of visiting land-based facilities in the state.

Common concerns

These free-to-play platforms don’t have to get a license to operate in the state, allowing people to enjoy casino-style games and make sports predictions with virtual tokens. Kudon is frustrated at how his group’s members spend millions in licensing fees, spend years trying to push through legislation, and deal with high tax rates while sweepstakes casinos get off relatively scot-free.

these platforms are almost identical to online casinos and sportsbooks

He demonstrated on the podcast how these platforms are almost identical to online casinos and sportsbooks, with some even offering real money prizes in the form of redemptions. IGA Chairman Rocha referenced the previous issues tribes had with the SBA, stating that while the battle was painful, it is in the past and now is the time for “commercial operators and sovereign nations to band together and root this out.”