Tribes Hold Key To Sports Betting In Holdout U.S. States

January 24, 2024
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A decision by proponents to discontinue efforts to put a sports-betting initiative proposal on the state ballot in November underscores the pivotal role that Indian tribes will play in eventually bringing legal sports wagering to California and other states.
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A decision by proponents to discontinue efforts to put a sports-betting initiative proposal on the state ballot in November underscores the pivotal role that Indian tribes will play in eventually bringing legal sports wagering to California and other states.

Initiative 23-0030-1 would have legalized mobile and retail sports betting, as well as roulette and dice games, under compacts approved by the state legislature and the U.S. Department of the Interior’s Bureau of Indian Affairs. 

But supporters of the initiative confirmed on Monday (January 22) that they would no longer be moving forward with efforts to gather voter signatures to qualify the initiative for a referendum, in part due to insurmountable opposition from California Indian tribes.

James Siva, chairman of the California Nations Indian Gaming Association (CNIGA), said that the group's members were pleased that “the backers of [the] initiatives have kept their word and withdrawn what we could only regard as a cynical attempt to legalize sports wagering and online betting.”

“Let this failure also be a warning to others that seek to dubiously enter the California gaming market,” Siva said in a statement. “Using tribes for your own gain will get you nowhere.”

Messages left on Tuesday with representatives of Eagle 1, which was behind the referendum effort, were not returned.

In November 2022, California voters overwhelmingly defeated two ballot initiatives that would have legalized retail and state-wide mobile sports wagering through a high-profile campaign that was ultimately defined by the opposition of Indian tribes to a measure that would have opened up the California market to online sports betting through leading national operators partnered with tribes.

Back On The Agenda In Minnesota

Just as California tribes remain the most influential lobbying force in California, it is a similar story in Oklahoma and Minnesota, two other major markets for tribal gaming.

A recently circulated sports-betting bill in Minnesota is already facing some challenges even before it is introduced on the first day of the 2024 legislative session on February 12.

Republican state Senator Jeremy Miller last week announced an updated bill aimed at bringing various stakeholders and legislators on both sides of the aisle together to legalize wagering on sports in Minnesota.

Miller said the updated proposal, called the Minnesota Sports Betting Act 2.0, would build on previous legislation and grant tribes exclusivity over sports-betting operations. Miller’s proposal includes licensing agreements for the state’s 11 tribal nations to offer both retail and online wagering. License holders would also be able to operate retail sports betting at racetracks and professional sports stadiums.

As things stand, however, Canterbury Park racetrack does not support the bill, and instead wants to be able to obtain its own license to offer sports betting without a tribal partner.

The bill includes a 15 percent tax rate, with 15 percent of revenue designated to go to the Minnesota Racing Commission.

Last year, sports-betting bills were introduced by Representative Zack Stephenson and Senator Matt Klein, both members of the Minnesota Democratic-Farmer-Labor (DFL) Party. Stephenson’s bill, HF 2000, and Klein’s bill, SF 1949, carry over into this session.

It remains unclear if any bill can pass without the state’s tribes and racetracks reaching an agreement. Although the DFL controls the legislature, Democrats will also still need some Republican support to pass sports-betting legislation and Minnesota Republicans have supported including the racetracks in any sports-betting proposal.

Previously, Andy Platto, executive director of the Minnesota Indian Gaming Association (MIGA), has taken the position that either tribes get exclusivity for sports betting, or they will oppose any bill.

Platto declined to comment Tuesday on Miller’s bill.

“The goal of this proposal is to bring folks together to work toward a bipartisan solution to legalize sports betting in Minnesota,” Miller said in introducing his bill last week. “I strongly believe we can get it done this year.”

Sooner State Sports Betting

In Oklahoma, lawmakers will reconvene on February with two sports-betting bills waiting for them upon their return.

Republican Senator Casey Murdock has pre-filed Senate Bill 1438, which would authorize the Oklahoma Lottery Commission to implement mobile and retail sports betting under a structure similar to a proposal announced by Oklahoma Governor Kevin Stitt, a fellow Republican, in November. Stitt proposed to allow federal-recognized tribes to compact with the state to offer retail sports betting in their tribal casinos but require a state-issued, and non-exclusive, license for mobile wagering.

The Oklahoma Indian Gaming Association has made it clear that it will oppose any measure that threatens tribal sovereignty and rights to offer gaming in the state. 

Another measure, filed last week by Oklahoma Republican Representative T.J. Marti, contained very few details. House Bill 3360 simply offers the title of the “‘Sports Betting Act of 2024’” and says the legislation would become effective on November 1, 2024, if approved.

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