It wasn’t all that long ago when California’s tribes stood steadfast in the path of the legalization of sports betting in the state. Six years ago, the state’s tribes banded together to thwart an effort at sports betting legalization that was being led by prominent online sports betting sites DraftKings and FanDuel.
Today, the shoe is completely on the other foot. Spurred on by the growing threat of prediction markets, California’s tribal leaders are striving to get a sports betting initiative as part of the 2028 election ballot.
“This is bigger than Indian gaming,” David Bean, chairman of the Indian Gaming Association, said during the recent
Indian Gaming Tradeshow & Convention. “This is about protecting the integrity of our industry, protecting tribal sovereignty, and protecting state sovereignty. What we are seeing right now impacts all of us.”
Tribal leaders argue that prediction markets do not add anything of a positive nature to the state. Since they operate entirely online, the sites do not create any jobs in the state. And since they are federally regulated, unlike sports betting, which is state-regulated, there are no benefits to California in terms of tax revenue.
By permitting prediction market sites to offer sports event contracts in states like California, where sports betting remains illegal, Bean believes that the federal government is enabling illegal gambling in the state. He also notes that the federal laws governing tribal gambling in California say that only the state’s tribes are legally permitted to operate any form of betting.
“Through their inaction, the message being sent is that our laws, our operations, and our sovereignty do not matter,” Bean said. “That is something we cannot and will not accept.”
That’s why he feels that it is essential to move ahead with sports betting legislation, while also holding the prediction market sites at bay. A November 2025 lawsuit filed by several of California’s tribes against prediction market site Kalshi is already ongoing.
“We are pursuing a parallel path forward through litigation and legislation,” Bean said. “We are preparing to defend our rights and ensure that the law is upheld.”
California’s sports betting history displays a litany of failed attempts
History suggests the tribes will face an uphill battle to get sports betting legalized in California.
Two separate initiatives in 2022 sought to legalize forms of sports betting in California. Both were included as referendums on that year’s election ballot. Over $400 million was invested by lobby groups in support of the two campaigns.
Proposition 27, backed by the major U.S. online sportsbooks, sought to legalize online sports betting in California. The state’s tribes were pushing their own referendum. Proposition 26 would have legalized in-person retail sports betting only at California’s tribal casinos.
Neither referendum generated much support from the general public. Only 16% of voters supported Proposition 27. Of the ballots cast on Proposition 26, only 30% were in favor of the initiative.
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