California’s Tribal gaming leaders are gearing up to take action against sweepstakes gaming sites and Daily Fantasy Sports (DFS) operators in a new bid to “defend their sovereignty” as gambling operators in the Golden State.
Tribal Leaders in California Leading the Charge
During an appearance on the podcast hosted by Victor Rocha, the Conference Chair of the Indian Gaming Association (IGA), members of the IGA and the California Nations Indian Gaming Association (CNIGA) unveiled plans for a joint push to regulate sweepstakes and Daily Fantasy Sports.
Rocha commented about sweepstakes sites: “They’re unregulated. They’re untaxed. This is gambling on training wheels. It’s a bunch of lawyers who are spitting in our face and looking at gray areas thinking that we’re not going to act.”
The chairman also pointed out that “these guys don’t pay money into the system. When we’re talking about cannibalization, this is what we’re talking about. It’s companies like this that take money out of California.”
CNIGA chairman James Siva added he’s “baffled” by the fact that sweepstakes and DFS platforms haven’t already received “any big pushback from the state.”
Potential Actions Against Sweepstakes Gaming
When it comes to concrete action, Mr. Siva shared plans to reach out to Apple, Google, and Android regarding the legality and legal issues of allowing sweepstakes and DFS operators to their app stores to users in California.
The tribal gaming commission could also issue a violation against the platforms, which is something we’ve seen take place in New Jersey.
“Any new entry of gaming into California begins and ends with tribes,” the chairman pointed out. “That’s the reality of how gaming operates in California. You may not like it, but you will respect it in the end.”
AGA Open For Joint Action
The American Gaming Association (AGA) has stated it might play a role in the fight against sweepstakes platforms. In August this year, the association posted a memo calling for gaming regulators to examine sweepstakes platforms.
“The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions,” the memo stated.
“These sweepstakes-based operators have weak (if any) responsible gaming protocols and few, if any, self-exclusion processes.
“There is no independent product testing to ensure basic fairness to players, and although many claim players must be 18+, age verification procedures, if they exist, are often questionable. The opaque nature of these operations also presents a prime opportunity for illegal activity and enriching bad actors.”
AGA spokesperson now told LSR that the Association is “more than pleased to join alongside other interested stakeholders in prompting regulators and elected officials to more closely examine this sector.”
The Role of the Social and Promotional Games Association in this Latest Controversy
Supporters of the sweepstakes model from the Social And Promotional Games Association have stated that only 1 to 5 percent of players at sweeps casinos and sportsbooks actually spend real money.
The sweepstakes model usually includes the platforms operating on two types of virtual currency: one for free-play, and one for wagers that can be redeemed for real-money prizes.
This led Rocha to question why sweepstakes platforms opted against going 100% free-play since that would absolve them of any infringements on the rights of tribal gaming.
Given that action hasn’t been taken against DFS sites in California for over a decade, SweepsKings doesn’t see the above statements leading to any concrete legal change in the Golden State.
Author: Bogdan Lunkan
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