Tensions Remain Between Key California Sports Betting Stakeholders

Optimism over the future of California sports betting appears to be climbing in recent months and weeks. That is a fairly big development when you consider the state of affairs back in 2022. 

With that said, the legalization of sports betting in California remains far from a given. There are still plenty of issues to hash out. Even amid recent collaboration and dialogue between tribal nations and online sportsbooks in the United States, both parties acknowledge the underlying tension through which they must continue to work.

The latest ission comes from an episode of a podcast co-hosted by Victor Rocha, a leader of California tribes who also founded the tribal gaming news site Pechanga.net. He recently had on Jeremy Kudon, who is the president of the Sports Betting Alliance, a coalition that essentially represents the interests of heavy hitters such as FanDuel and DraftKings. During their discussion, Rocha addressed the elephant in the room.

“I think a lot of people were shocked when I announced that you were going to be our guest this week,” Rocha told Kudon (via Capitol Weekly). “I think a lot of people thought that after California 26 and 27 that there would be no way that the East and West shall meet.”

There are more positive developments to spotlight from this appearance. Heck, even Rocha’s ission is technically a bright spot. Open dialogue is a good thing. But this does serve as a valuable reminder that a unified effort in 2026 to legalize California sports betting has wrinkles it must still iron out. 

Where Do Tribes and Operators Differ on the California Sports Betting Discussion?

Many mistake the primary issue between tribal nations and online operators. It is too often painted as the tribes refusing to let companies such as FanDuel and DraftKings operate in-market. That isn’t quite the case.

Tribes are willing to let sports betting apps operate in California. They just do not want these companies operating independently. They argue that their gaming compact with The Golden State affords them exclusivity over all forms of gambling, including sports betting. 

Instead, tribal nations seem more open to a model in which operators of online sports betting in the USA serve as ing characters. Companies like DraftKings and FanDuel would lend their name, experience and tech to California tribal operators in exchange for a percentage of sports betting revenue in The Golden State.

This model was considered a non-starter just a couple of years ago. That is how the state wound up with competing sports betting measures. Proposition 26 legalized sports betting for tribal operators alone, and Proposition 27 permitted the legalization of California online sportsbooks. The campaigns for both initiatives combined to become the most expensive set of ballot measures in the history of the United States. They also, notably, both flopped at the polls.

That collective failure is the genesis of the two sides striving for a more collaborative approach. Online sportsbooks, in particular, seem to understand they won’t touch California’s lucrative market without tribal . But does that acceptance extend to operating in a purely ing capacity? 

Sportsbooks Seem on Board with ing Partnerships, But to What End?

Outwardly, operators hoping to push California sports betting over the hump in the near future sound amenable to tribal gaming control. Kudo said as much during his appearance on Rocha’s podcast. As Brian Joseph of Capitol Weekly writes:

“Also during that webcast, Kudon parroted [FanDuel CEO Amy] Howe, conceding control of California’s lucrative sports gaming market to the tribes after the defeat of Prop. 27. ‘Ultimately, we’re going to see 27 and the failure of that to be one of the best things to happen,’ he said. ‘Because we learned how important it is to follow your lead and follow the tribes’ lead and work together and do what we can.When you guys are ready to do it, we’re going to be there to help you in any way, shape or form that you think is best. I think there’s a great future there.’”

As Joseph notes, these sentiments from Kudon echo what FanDuel’s CEO said late last year. She acknowledged Prop 27 was a “spectacular failure,” also adding: “It will be up to the tribes when it (sports gaming legalization) happens, how it happens and what role” companies such as FanDuel and DraftKings will play in it.

Taken at face value, this is all encouraging. And we are not here to tell you otherwise. Yet, despite all the references to collaboration and deference, it is noteworthy that we still haven’t seen another California sports betting proposal from either of these two parties in the years since 2022. Should we just believe a successful one will crop up in the next year, gaining approval in time to the 2026 electoral ballot?

Collaboration of Sports Betting Legalization in California May Just Take Time

Truth be told, the latest comments and developments seem neither overly rosy nor problematic. If anything, they seem to hint that collaboration is in the works, but a final proposal will take time. 

Now, whether the amount of time needed aligns with the 2026 election is a separate matter. It might not. No California sports betting measures appear to be in the works this year. That leaves next year’s legislative sessions as the last chance to green light one. While this isn’t an impossible timeline, we would expect to hear more about what a bill might look like.

Based on the most recent comments, it sounds as if the next initiative will grant exclusivity to tribes, but with online operators entering strictly as partners. But will that be the permanent infrastructure? After all, some have speculated online sportsbooks would get the right to operate more independently after a year or two. Rocha’s sentiments in particular, though, don’t seem to reflect that kind of operational freedom. Will online sportsbooks still be on board with tribal exclusivity if they view it as indefinite, and non-negotiable down the line? 

One way or another, Californians are going to find out. That knowledge just may not come in time for 2026 legalization.  

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