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Governor Gavin Newsom of California is always in the news. His name was floated for a 2024 Presidential election run — and his odds at top offshore sportsbooks were decent enough before Kamala Harris secured the nomination.
Newsom was also recently in the news, from his right-leaning enemies, for spending $200,000 of taxpayer money on a personal photographer.
Point is: everything Newsom does, says, or looks at gets a news article write-up. Well, most things at least cause this next news item flew under the radar. Newsom and a few Native American tribes expanded their agreements for betting in California. Let’s take you inside what happened and why it matters to a future where sports betting apps are allowed in California.
Fresh Ink On New Compacts
Newsom signed new tribal-state gaming agreements with two Native American tribes — Timbisha Shoshone Tribe and the Elem Indian Colony of Pomo Indians of the Sulphur Bank Rancheria (mouthful name, we know). There are some variances between these compacts.
Oh, and before we get too ahead of ourselves, it might make sense to explain what compacts even are. Compacts are agreements between Native American tribes and state governments that outline the terms under which tribes can operate casino-style gaming on their lands. These compacts regulate gaming activities, establish revenue-sharing arrangements, and set operational standards to ensure compliance with laws, among many other things.
Let’s break down these compacts, starting with the Timbisha Shoshone Tribe. As part of their compact, they were allowed to operate Class III gaming activities. These cover gaming devices and certain card games. The tribe plans to build a casino in Inyokern, California. This comes on the heels of a failed project in Ridgecrest two years ago.
It wouldn’t be California if there was no language about compliance with climate standards, which there was. We don’t know the full details of it, but it was mentioned in passing in the press release. Classic California and their go green initiatives though.
As for the Elem Indian Colony of Pomo Indians, the compact gives them an additional 349 gaming devices for its two casinos, all located in Lake County. Bettors will have a wealth of more options to play, which is usually a good thing entertainment-wise.
Moreover, the new gaming compact outlines the tribe’s required quarterly contributions to California’s Special Distribution Fund. What’s that, you ask? It’s a fund that helps finance problems gambling programs, plus does regular betting oversight. More funds will be allocated to accomplish the program’s mission.
On top of those two agreements, Newsom and company also extended its current agreement with the Augustine Band of Cahuilla Indians. Nothing new was added to the compact, just years were added to the contract. It’s one of the smallest tribes in the entire nation, however, they own Augustine Casino in Coachella — yes, right near where the music festival happens annually.
Tribes Hold Keys To Legal Sports Betting
These new compact agreements are at the center of the ongoing debate over the legalization of sports betting in the state. One of FanDuel’s top execs — Frank Sizemore, FanDuel’s Vice President of Strategic Partnerships — has gone as far to say that sports betting in California would likely be “tribally led.”
Extra heat was added to the situation after what happened in Florida’s sports betting scene. Out there, the Seminole Tribe of Florida was dealt a major win by the Supreme Court. The courts decided not to hear a case that challenged the Seminole’s “hub and spoke” betting model that they use to offer mobile sports betting statewide — not just within their reservation lands.
Seminoles have been under heavy litigation since signing an exclusive compact with Florida in 2022 to offer sports betting for 30 years in the state — a monopoly essentially. Thanks to the Supreme Court, the monopoly is intact and has possibly spurred tribes in other states to follow Florida’s model.
But here’s why California’s path to legalization won’t be nearly as easy as Florida — there are too many damn tribes and compacts in the Golden State. We mean, we just covered three that Newsom re-signed in the last few weeks. But there are dozens upon dozens more. Getting every single tribe at the negotiating table for one massive sports betting agreement won’t be easy. It’ll take a true deal-maker — maybe that’s Newsom, maybe that’s not.
A compact is really the only path toward legalization in California too. Back in November 2022, tribes put together two separate bills to legalize sports betting. These are legit bills that went to the ballot during midterm elections. The result? Overwhleming failure as voters said no the bill, embarrassing the tribes in the process so much so we don’t see them going down that route again.
So as you can see, there are a lot of variables at play going forward. But ultimately, the fate of sports betting in-state rests on these tribes, compacts, and Newsom.
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