What SCOTUS Decision Means For California Tribes And Legal Sports Betting

Written By Adam Hensley on June 25, 2024
Red Earth tribal casino, which could stand to benefit from Florida SCOTUS decision

A recent decision regarding Florida’s gambling market could cause major shockwaves, specifically regarding the push for California sports betting.

A petition against Florida’s current betting market recently made its way up to the U.S. Supreme Court. The petition, filed by West Flagler and Associates, claimed that the state’s current gaming compact, which gives tribes exclusivity over sports betting, was illegal.

The SCOTUS didn’t end up taking the case, and in turn, it’s business as usual for Florida.

However, now states across the country that don’t have sports betting have somewhat of a blueprint for how to approach the issue.

And California is one of those states.

“The Seminole compact being upheld is a positive outcome for all of the tribal gaming industry but especially for California tribes,” California Nations Indian Gaming Association Chairman James Siva told PlayUSA. “In conjunction with the new DOI rules, California tribes now have a platform that would allow tribes to continue to protect our exclusivity as operators in the state.”

A quick rundown of what happened in Florida

Back in 2021, the Seminole Tribe of Florida and Gov. Ron DeSantis agreed on a new gaming compact. This compact allowed for sports betting in the state, but it also gave the tribes exclusivity.

Under the compact, pari-mutuel facilities, like the ones owned by West Flagler, can operate retail sportsbooks. But they must be a contracted vendor of the tribe and give 40% of their sportsbook revenue to the tribe.

But due to the “hub-and-spoke” model in Florida, the tribe has complete control over the online sports betting market. The Seminole Tribe partnered with Hard Rock to offer Hard Rock Bet, the lone online sportsbook in the state.

West Flagler argued that this violated the compact, which called for online sports betting on tribal lands only. But all Florida residents, including those using their mobile devices off tribal lands, could still place wagers.

The argument for the current model was that the hubs and the technology accepting and proccessing the transactions are on tribal land. And in the end, that’s how things will continue to run in Florida.

Exclusivity a major factor in California’s push for sports betting

It’s grown increasingly clear over the past year that should California legalize sports betting, the tribes must be involved.

A perfect example is what happened with a proposal by Kasey Thompson, Reeve Collins and Ryan Tyler Walz. Dubbed the Tribal Gaming Protection Act and the Sports Wagering Regulation and Tribal Gaming Protection Act, their efforts would have given the tribes exclusive rights to operate sports betting within the state. That included both online and retail formats.

None of the three men listed above were a part of any of California’s tribes. They had a financial gain, as for a fee, they would help to eradicate illegal gambling within the state.

The tribes didn’t take their attempts to legalize sports betting seriously. The California Nations Indian Gaming Association voted unanimously to oppose the initiatives.

In fact, Siva called their attempt to do so “cynical.”

“These initiatives attempted to use the tribes’ good names to cleanse illegal off-shore, online gambling corporations with an appaling track record of malfeasance. Let this failure also be a warning to others that seek to dubiously enter the California gaming market. Using tribes for your own gain will get you nowhere.”

In what was viewed as a twist, shortly before the sports betting initiative sponsors pulled the plug, some of the industry’s biggest names teamed up with California’s tribes to shoot it down.

DraftKings, FanDuel, BetMGM and Fanatics, which make up the Sports Betting Alliance, announced their opposition to the initiatives.

“At the end of the day, if wagering is going to be done legally in California, it’s going to be done with and through the 100-plus tribes here… it is critical for us to do this together and not against one another,” FanDuel CEO Amy Howe said earlier this year.

Could sports betting be on the horizon for California?

With the SCOTUS’ decision, the chances for sports betting in California might just be as good as ever.

“The Seminole compact provides a role model for tribes that might work in California for online sports betting, so this decision puts it firmly on the table,” A Pachenga tribal member and conference organizer for the Indian Gaming Association told PlayUSA.

There are 110 federally recognized tribes in California, which certainly adds a wrinkle into things.

In Florida, the Seminole Tribe has all the power, since it’s agreement is directly with the state. But in California, all tribes will likely want a piece of the pie.

“The diverse nature of California with the number of tribes and number of gaming operations necessitated a unique approach to any expansion of gaming,” Siva told PlayUSA. “By potentially utilizing the model laid out in the Seminole compact, California tribes may have the path forward as we continue to work toward a sustainable solution for sports betting in California.”

Getting all on board isn’t an easy task, but the common ground of tribal exclusivity will help.

And, with the SCOTUS decision regarding Florida, California’s tribes can start thinking ahead for how they see a legal sports betting market in their state.

Another plus: The SCOTUS decision came more than a year before 2026 ballot initiatives need to be filed in California.

“Thus far, I think a lot of us in California have looked casually at what the Seminole compact means for us,” said Rocha. “Now, we’ll have to take a deeper dive. Theoretically and hypothetically, it’s very good for 2026.”

Photo by Elliott Spagat / AP Images
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Adam Hensley

Adam Hensley is a journalist with experience covering online sports betting and gambling across Catena Media. His byline has appeared in the Associated Press, Sports Illustrated and sites within the USA Today Network.

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