California Tribes Score Massive Victory
The DFS industry has faced its fair share of opponents in California, but the tribes have been the first to engage the Attorney General’s office in the debate successfully. The California Nations Indian Gaming Association (CNIGA) submitted an official request for Bonta to publish an opinion on the legality of the industry earlier this year, and the AG delivered.
“It’s our duty, not our discretion,” Bonta told KCRA 3. “We are mandated, we shall respond and provide an opinion as appropriately requested under the law. We must, and we did.”
Tribes have helped ban some DFS game offerings in US markets, but California is the first to successfully ban the entire industry. The success once again establishes CNIGA tribes as the sole legal gambling operators in the state.
DFS Operators Won’t Go Quietly
When AG Rob Bonta announced that he would be publishing an opinion on DFS, the industry immediately took action. Industry leader Underdog filed a lawsuit in a Sacramento Court, asking it to delay the opinion, claiming they didn’t have time to prepare for the fallout. A judge rejected the request, paving the way for Bonta to publish the opinion on July 3.
DraftKings, FanDuel, PrizePicks, and Underdog are the largest DFS operators in the state. They are expected to be on the front lines of this battle with lawmakers. These companies have deep pockets and skilled legal teams, meaning the state could face lengthy and costly lawsuits over the coming months.
All four DFS leaders are still operating in the state of California.
Fallout Will Affect Sports Betting Debate
California remains one of the few states without any form of regulated sports betting. California tribes have successfully defeated each attempt to legalize the industry, but have recently shown some willingness to restart negotiations. Negotiations have been slow, but the state’s ban on DFS will change that.
Many California residents looking to get their sports betting fix were able to do so with DFS platforms. These provided a way for them to earn money from their sports fandom without the need for a traditional sportsbook. With those platforms facing a new ban, customers will demand a new option. If the tribes and state can’t figure out how to agree on a regulated market, they could risk those customers seeking out illegal offshore sportsbooks.
