California Tribes Unite as Prediction Markets Gain Traction in the State

California’s tribal leaders are boosting their efforts to counter the exponential rise of prediction markets, converging in San Diego this week to strategize their legal and political maneuvers. The gathering occurs in the wake of Fanatics launching its prediction market platform in California, with industry giants FanDuel and DraftKings poised to join the fray. This rapid growth poses a formidable challenge to the tribes’ established gaming rights, a concern they are fervently addressing in hopes of either decelerating or halting this trend.

In a recent national webinar hosted by the Indian Gaming Association, tribal leaders delineated their concerns. James Siva, chairman of the California Nations Indian Gaming Association, articulated that these prediction markets threaten the exclusive rights granted by the Indian Gaming Regulatory Act and clash with state regulations. He emphasized that California’s Attorney General Rob Bonta is set to amplify state involvement, including by supporting Maryland’s lawsuit against Kalshi and initiating California’s own legal measures. Siva and other leaders persist in their commitment despite a legal setback earlier this year when three northern California tribes’ attempt to block these platforms was permitted to proceed during the litigation process. The tribes remain optimistic that Bonta’s office will soon enact a stop order.

In a recent national webinar hosted by the Indian Gaming Association, tribal leaders delineated their concerns. James Siva, chairman of the California Nations Indian Gaming Association, articulated that these prediction markets threaten the exclusive rights granted by the Indian Gaming Regulatory Act and clash with state regulations. He emphasized that California’s Attorney General Rob Bonta is set to amplify state involvement, including by supporting Maryland’s lawsuit against Kalshi and initiating California’s own legal measures. Siva and other leaders persist in their commitment despite a legal setback earlier this year when three northern California tribes’ attempt to block these platforms was permitted to proceed during the litigation process. The tribes remain optimistic that Bonta’s office will soon enact a stop order.

Tribal leaders argue that without stringent regulation, prediction markets compromise their exclusive gaming privileges, a promise anchored in federal law. However, market operators counter that event contracts should be governed by federal commodities regulations, which would exempt them from state jurisdiction. This persistent discord has generated a slew of legal altercations involving companies like Kalshi and Robinhood across the United States. Even as a federal judge allowed prediction platforms to operate amid ongoing litigation, the tribes’ concerns have been undeniably acknowledged, fueling their determination.

Amid these legal confrontations, tribal leaders are