Within the states of Florida and California, Tribal gaming finds itself in a fascinating position. In Florida, only the Seminole Tribe,
and Hard Rock, can provide mobile sports betting, with continued legal challenges falling well short of credibly challenging this
state of play.
In California, meanwhile, the Tribes hold all the power – a truth commercial operators like FanDuel and DraftKings know all too
well. After failing to get laws passed to allow mobile sports betting in the Golden State in 2022, FanDuel CEO Amy Howe admitted
at IGA 2024 that the Tribes are in pole position; they must be respected by any new brands hoping to make Californian sports betting a
reality.
Therein lies the central philosophical theme, though, and one the cover feature of this issue aims to explore. Whether it’s
Florida, California or anywhere else in the US – and whether its sports betting, online casino or any other vertical – Tribes now will
be facing choices in the next few months that could lead to irreversible paths either way.
In states like California, where Tribes hold all the cards, should they protect their current status and existing power, fending
off the risk of commercial cannibalization?
Or should that viewpoint be considered short-sighted? Could Tribes and commercial operators – together – partner up to
increase the overall size of the market, and therefore both benefit?
Only recently, the National Indian Gaming Commission announced record-breaking Tribal gaming revenue numbers for 2023:
$41.9bn nationwide. But that number only bears true meaning with wider context: commercial US gaming revenue for the same
year totaled $66.5bn.
The equation for Tribes to determine is whether their $41.9bn will increase in the long run with increased collaboration, or
whether their share falls and only the commercial sector grows.
Many Tribal executives, including some outspoken panelists at IGA earlier this year, are firmly on the ‘protect’ side, buoyantly
dictating terms and declaring that any commercial brands will have to follow Tribal rules.
And this is an understandable position. Tribal gaming
has not only built a prestigious reputation based on heritage and tradition, it is a financial stronghold that creates gaming
proceeds to help fund the wider foundations of Tribal existence. That is especially true in Florida and California. For years, these
two states have been discussed as potential game-changers for US betting. It is no surprise, then, that Tribes are right at the
heart of the discussion in both.