Tribes Warn California Legislators Of End-Around By Fantasy Sports Operators 

Written By:   Author Thumbnail Marcus DiNitto
Author Thumbnail Marcus DiNitto
Marcus DiNitto is a writer, editor and entrepreneur based in Charlotte, North Carolina. He has covered sports business, gambling and finance since 1998 for a variety of media outlets including Sports Business Journal, Th...
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In a letter sent out yesterday, California’s leading tribal coalitions are urging lawmakers to withhold any engagement on fantasy sports legislation until Attorney General Rob Bonta issues a formal opinion on its legality.

Certain fantasy sports operators are seeking to lighten the gray of California’s DFS market, a letter from two tribal groups to state lawmakers warned.

The letter is signed by James Siva, Chairman of California Nations Indian Gaming Association (CNIGA) and Lynn Valbuena, Chairwoman of the Tribal Alliance of Sovereign Indian Nations.

“On behalf of the undersigned tribal organizations, we write to inform you that certain fantasy sports operators may be seeking to introduce legislation regarding the legal status of fantasy sports games in California,” the letter states.

Despite an official opinion on the legality of fantasy sports expected later this year from state Attorney General Rob Bonta, it continues, “some fantasy sports interests are already approaching members of the Legislature to author and/or support a bill on this issue. We respectfully urge you to withhold any commitments or authorships until the Attorney General releases his opinion.”

The tribes say they’ll oppose any bill that’s introduced before Bonta issues his opinion.

California’s DFS market, operating in a legal gray area, is the largest in the country.

Tribes’ icy relationship with Kalshi 

This scrap is one of many California’s Native American tribes have engaged in recently with gray-market gambling operators.

Sportico reported on Monday that Victor Rocha, Chair of the Indian Gaming Association, takes issue with Kashi’s claim that the company has had “productive conversations with several tribes.”

Rocha said he had discussions with Kalshi, but neither call was anything close to productive.

“I’ve talked to [Kalshi CEO] Tarek Mansour twice now, and my take from him is that he’s a lying little twerp,” Rocha said.

The tribes view the “sports event contracts” Kalshi offers – sports bets to most – as an infringement on their rights granted under the Indian Gaming Regulation Act.

The tribes sound ready to battle Kalshi in the courts. Rocha emailed Mansour to tell him exactly that, and according to the Sportico report, “tribal groups are leaning toward filing their own lawsuit against Kalshi.”

In both New Jersey and Maryland, Indian tribes have filed amicus briefs in support of the states’ cease-and-desist efforts against Kalshi.

Tribes also fighting sweeps

CNIGA is also supporting legislation in California to ban sweepstakes casinos, as the tribes look to protect their exclusive rights to casino gambling in the state.

Earlier this month, New York became the latest state to pass legislation banning sweeps-style gaming.

Sweeps has also been banned in Washington, Michigan, Montana and Connecticut, and there’s legal maneuvering in several other states to kick these operators out of their jurisdictions.

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Marcus DiNitto
Marcus DiNitto is a writer, editor and entrepreneur based in Charlotte, North Carolina. He has covered sports business, gambling and finance since 1998 for a variety of media outlets including Sports Business Journal, The Business Journals. Sporting News and Gaming Today.