CNIGA Issues Warning After California Sports Betting Initiative Scrapped

In a significant turn of events, the California Nations Indian Gaming Association (CNIGA) has sounded an alarm after two separate ballot initiatives seeking to legalize sports betting in California met their demise. These initiatives aimed to grant tribes exclusive rights to operate sports betting activities within the state, but they were scrapped due to fierce opposition from tribal communities.

Eagle1 Acquisitions Corp, the group backing one of the propositions, had made amendments in December to garner tribal support. The 'Sports Wagering Regulation and Tribal Gaming Protection Act,' tabled in October, sought to amend the California constitution, granting tribes exclusive rights for both retail and online betting.

However, the CNIGA rejected these amendments, emphasizing the importance of tribal integrity. Following the withdrawal of these initiatives, the CNIGA issued a statement cautioning against further attempts to legalize sports betting in California.

The 'Tribal Gaming Protection Act' proposed that tribes contribute 15% of their sports betting gross gaming revenue (GGR) to a tribal wagering revenue trust fund and 10% to a California homelessness and mental health fund. Tribes were also required to partner with sports betting operators.

Despite amendments, the CNIGA continued to oppose the initiatives, expressing disappointment over not being consulted during the proposal's development. They stressed the need for tribal governments to have a say in decisions that impact their communities.

The surprise filing of these initiatives in late 2023 came after California voters had already rejected sports betting proposals in November 2022. Industry players, including the Sports Betting Alliance (SBA), also opposed the initiatives, citing the lack of widespread tribal support and potential market restrictions.

In conclusion, the failure of these initiatives serves as a cautionary tale, highlighting the significance of engaging with tribal communities and stakeholders before pursuing any future attempts to legalize sports betting in California.