California Tribes Push Back on DFS and Sweepstakes Operators

Summary:

• California tribes praised a new AG opinion and state bill targeting unregulated DFS and sweepstakes gambling.
• Tribal leaders criticized slow enforcement and warned that offshore and prediction-market operators threaten sovereignty.
• Experts urged ongoing pressure on lawmakers and regulators to protect tribal gaming rights.

California’s battle over unregulated online gaming heated up this week as tribal leaders praised two major moves..

The first one was the state Senate advancing a bill to crack down on sweepstakes gambling. The other one was Attorney General Rob Bonta’s new opinion declaring daily fantasy sports (DFS) illegal under state law.

Turning Point in Defending Tribes

Tribal representatives, speaking during an Indian Gaming Association (IGA) webinar Wednesday, said these actions mark an important turning point in defending tribal sovereignty against out-of-state operators exploiting legal loopholes.

The webinar, called “Closing the Loopholes in California: Tribal-Led Efforts to Rein in Fantasy Sports and Sweepstakes Sites”, featured IGA’s Victor Rocha and Brian Giles alongside tribal gaming attorneys Scott Crowell and Joe Webster.

Panelists unpacked both Bonta’s legal opinion and Assembly Bill 831, a proposal that tribes support to explicitly ban online sweepstakes casinos.

The panel argued the state has been far too slow to enforce existing laws, leaving tribes to fight against companies operating in murky legal territory.

Webster commented,

An avalanche is already happening against these [operators]. You’re seeing state-by-state legislation, AG opinions, enforcement action, and a lot of lawsuits. A whole range of gaming that tribes are supposed to have exclusivity for is being run over by these operators

Rocha added that California’s size makes it the key battleground:

After California, they’re not going to have much oxygen left. I think Texas is coming right behind us, especially when it’s this egregious exploitation.

Tribal Gaming Attorney: “This Shouldn’t Be a Hard Sell”

Yet frustration simmered over the lack of action to date. Crowell criticized Bonta’s office for failing to crack down on sweepstakes despite their clear illegality.

Attorney General Bonta will say the legislature is dealing with this, so in the meantime I’ll do nothing, which is what he’s been doing since he’s been in office

Webster agreed enforcement is critical:

This shouldn’t be a hard sell to state regulators. The statutory language is abundantly clear.

Panelists warned that offshore operators continue to profit unchecked and even mount PR campaigns portraying California’s moves as unfair.

Meanwhile, prediction-market companies like Kalshi pose an even newer threat, potentially undermining tribal and state-regulated betting through federal loopholes.

Crowell noted,

Of all the threats we’ve talked about, the CFTC prediction market and Kalshi product are the most worrisome

As technology evolves and illegal operators adapt, the panel agreed that tribes must keep pressing lawmakers and regulators. Rocha summed up the stakes bluntly, saying that California is “the place where this all ends”